GE, Ford sign $336 million federal contract to make ventilators for coronavirus outbreak

General Electric and Ford Motor will produce 50,000 ventilators for the U.S. government under the Defense Production Act for $336 million, federal officials announced Thursday.

Production of the ventilators is expected to begin next week at a Ford facility in Michigan. The companies are expected to produce all the ventilators by July 13, according to the Department of Health and Human Services.

According to the terms in the announcement, each ventilator would cost $6,720. That’s nearly $10,000 below a previous federal contract for 30,000 ventilators at $489.4 million, or about $16,300 per unit, with General Motors and Washington-based Ventec Life Systems.