General Motors Company GM recently announced that it will continue building critical-care ventilators at the Kokomo plant, after the completion of its $489.4-million contract with the U.S. Department of Health and Human Services (HHS) to build 30,000 ventilators in collaboration with Ventec Life Systems for the national stockpile to aid COVID-19 patients.
Notably, the contract was the first for ventilators under the Defense Production Act, issued by President Trump in March to fight against the coronavirus crisis. The car giant lent its logistics, purchasing and manufacturing expertise to ramp up the production of critically-important ventilators.
The companies are well on track to close the government contract for the ventilators by the end of this month. More than 20,000 devices have been designed and shipped so far.
There are approximately 800 people at the facility, including some 70 full-time General Motors workers, who are expected to return to their former place of work. The rest of the staff, a mix of Ventec and contract or temporary workers, will continue building the ventilators for the Washington-based medical device company depending on the demand.
General Motors did not, however, disclose for how long Ventec intends to continue operations at the plant following the conclusion of the contract or how the changeover will affect its employees.
Meanwhile, in June, General Motors announced a partnership with Honda Motor HMC to produce 12,000 gallons of hand sanitizer for its employees and health-care facilities, in order to fight against the pandemic. The hand sanitizers are manufactured through the Fuel Cell System Manufacturing (FCSM) partnership at the Michigan facility and used by both companies at their facilities throughout the region.
Zacks Rank & Other Stocks to Consider
General Motors currently flaunts a Zacks Rank #1 (Strong Buy). Shares of General Motors have depreciated 23.4%, year to date, compared with the industry’s rise of 76.7%.
Other top-ranked stocks in the auto sector include Sonic Automotive Inc. SAH and LCI Industries LCII, both sporting a Zacks Rank of 1, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Sonic Automotive have appreciated 46.7%, year to date, compared with the industry’s rise of 12.4%.
Shares of LCI Industries have rallied 16.7%, year to date, as against the industry’s decline of 1.9%.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
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Honda Motor Co., Ltd. (HMC) : Free Stock Analysis Report
General Motors Company (GM) : Free Stock Analysis Report
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