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Message: <blockquote data-quote="Rachel S" data-source="post: 27073" data-attributes="member: 3442">Hi guys and welcome to the first commercial update of April.So this week's articles:[USER=4422]@Curtley Bale[/USER] - Trump compels General Motors to manufacture ventilators[USER=4295]@Jiraiya[/USER] - Coronavirus: How it affects the UK Housing Market[USER=3460]@Alice Manners[/USER] - IR35 legislation postponed.[USER=3442]@Rachel S[/USER]  - LVMH produces sanitiserTrump compels General Motors to manufacture ventilators - [USER=4422]@Curtley Bale[/USER] The StoryPresident Trump has used Cold War-era measures to compel one of America’s largest car companies to ramp up the production of ventilators. The Defense Production Act was first enacted in 1950 and requires the company in question to prioritise its manufacturing for the government. The President has used this measure to force General Motors (GM) to increase ventilator production, with the fight against Coronavirus being ‘too urgent’ to worry about contractual negotiations.What it means for Businesses and Law FirmsTrump’s measures come at a time when cases in the USA are soaring. At the time of writing, there are more than 160,000 cases with nearly 3,000 deaths. Enacting the Defense Production Act will help to reduce the number of people having to fight the disease without a ventilator. By targeting GM, Trump is asking the company to move away from its traditional manufacturing of cars to use its expertise for the greater good. Through a series of loans and incentives, the US government is ensuring those that can help the cause are in a position to do so.In terms of business implications, GM will now have to prioritise its work for the government over its normal manufacturing contracts. GM is responsible for famous brands such as Chevrolet and Cadillac and turned over $137.2bn in 2019. It is likely that imminent deliveries of cars will now be delayed as attention is turned to ventilator manufacturing. As a result, there may be contractual debates among those who are expecting GM’s cars. Normally, GM would be breaching contracts by failing to deliver on time. However, it is likely a force majeure clause would be exercised in this unprecedented time.Whilst share price has fallen due to the government compulsion of the company, it is unlikely to affect their standing in the market. This is because competitors such as Ford and Fiat Chrysler are also heavily involved in the efforts and have temporarily placed car production on the proverbial backburner.</blockquote>

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