GE Teams With Ford as Various Automakers Work to Meet Demand for Ventilators

Ford Motor Company (F) is collaborating with GE Healthcare to manufacture 50,000 ventilators in Michigan over the next 100 days to help fight the COVID-19 pandemic.

What Happened
The Food and Drug Administration (FDA) has cleared GE/Airon Model A-E ventilator for production, which is scheduled to begin the week of April 20 at Ford’s Rawsonville, Michigan components plant.

After the initial 50,000 ventilators, the facility will make 30,000 ventilators a month on a need basis, according to a Ford statement.

The design of the ventilator has been licensed by General Electric Company (GE) owned GE Healthcare from Airon Corp, a Florida based company.

Why It Matters
The Model A-E ventilator does not require electricity to function and is suitable for the needs of COVID-19 patients who need respiratory support.

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The ventilators will be produced “around the clock” with the aid of 500 paid volunteers working in three shifts.

Airon produces three Airon pNeuton Model A ventilators a day in its Melbourne, Florida facility, while at full production Ford will make 7,200 Airon licensed A-E models a week.

This is the second Ford and GE Healthcare collaboration on ventilators. Last week, the companies announced the production of a simplified ventilator design from GE Healthcare. The combined supply will help in meeting the demand required in the current pandemic.

Other automakers are stepping up to supply ventilators as well. General Motors Company (GM) and Ventec Life Systems announced a partnership in order to produce 10,000 units per month at GM’s Indiana plant.

Tesla Inc. (TSLA) is reopening its New York Gigafactory to make ventilators as well, while Daimler AG (DDAIF) owned Mercedes F1 is making a machine that eliminates the need for ventilators entirely.

Price Action
Ford shares traded 1.39% higher at $5.10 in the after-hours session on Monday. The shares had closed the regular session 3.08% lower at $5.03.

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