What the Defense Production Act Means For 3M and GM

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What exactly is the Defense Production Act and what does it mean it's enacted on companies such as 3M and GM?

Rebecca Rose Woodland, litigator and legal analyst, joined TheStreet to weigh in on what it means. 

Watch the full video above for more. 

ICYMI: Defense Production Act Invoked on 3M

President Donald Trump ordered the industrial group to produce N95 face masks under the Defense Production Act.

Trump told reporters in Washington Thursday, April 2 that he was invoking the 1950 Act, which compels American companies to perform essential tasks for the government during times of national crisis, in order to "be able to do what they are supposed to do".

The Administration had raised earlier concerns that 3M-produced masks were being shipped overseas amid a national shortage for healthcare workers dealing with the accelerating coronavirus pandemic.

ICYMI: DPA Invoked on General Motors

On Friday, March 27, President Donald Trump blasted the automaker on Twitter for coming up short on a promise to provide 40,000 ventilators to combat the coronavirus pandemic.

CNBC reported that Trump was invoking the Defense Production Act to order to make the ventilators. The order does not change GM’s previously announced plans or schedule to produce the ventilators, CNBC said.

GM said it is partnering with Seattle-based medical device company Ventec Life Systems to build FDA-cleared ventilators at GM’s Kokomo, Indiana facility to be ready for shipment next month and ramp to making more than 10,000 of the devices per month with the infrastructure and capability to scale further. GM is donating its resources at cost.

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