GM and Ford Might Help Manufacture Ventilators - Nasdaq

As public health authorities ring warning bells about a shortage of ventilators needed to treat the most seriously ill Covid-19 patients, two major car manufacturers said they were looking into helping manufacture the devices.

A General Motors (ticker: GM) spokesman confirmed to Barron’s that the company is evaluating the possibility of making ventilators, and looking into how it can be useful. Ford (F) didn’t immediately respond to a request for comment, but a spokeswoman told Automotive News that the company is in preliminary talks with government officials in the U.S. and Britain about making ventilators, and was investigating whether it was feasible.

Both of the auto makers, along with Fiat Chrysler (FCAU), announced this week that they were temporarily shutting down their automobile factories because of the Covid-19 epidemic.

Health officials have said that the need for ventilators to treat Covid-19 patients will vastly outstrip the supply. Ventilators are complex devices that assist breathing in patients unable to breathe for themselves.

As auto makers consider stepping in, major ventilator makers said Wednesday night and Thursday morning they were vastly increasing production. Early Thursday, General Electric (GE) subsidiary GE Healthcare said the company was committing additional manufacturing lines to the production of ventilators, and adding shifts so that the lines will be active 24 hours a day.

“As the global pandemic evolves, there is unprecedented demand for medical equipment, including ventilators,” GE Healthcare President and CEO Kieran Murphy said. “We continue to explore all options to support this increased need.”

GE Healthcare also said it was hiring employees, reallocating current staff and taking other measures to increase production.

Medtronic (MDT), another major ventilator maker, said Wednesday night it had already increased ventilator production by 40% and planned to more than double its ventilator manufacturing capacity. The company said it has more than 250 employees working on ventilator manufacturing in its Ireland factory, and would transfer staff from other Medtronic facilities to help double that number. Production at the plant is shifting to a 24/7 schedule.

“Medtronic recognizes the demand for ventilators in this environment has far outstripped supply,” Bob White, president of Medtronic’s Minimally Invasive Therapies Group, said. “No single company will be able to fill the current demands of global health-care systems. However, with all manufacturers increasing their production and through partnerships with governments, hospitals and global health organizations, Medtronic is committed to getting more ventilators into the market and to the right locations in the world to help doctors and patients dealing with Covid-19.”

The process isn’t likely to be fast. A spokesman for Vyaire Medical, a private medical-device manufacturer that was spun out of Becton Dickinson (BDX) and is a major manufacturer of ventilators, said an individual ventilator takes up to 40 days to manufacture.

Write to Josh Nathan-Kazis at josh.nathan-kazis@barrons.com

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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