General Motors' Shares Rise on $489 Million Ventilator Deal

Shares of General Motors (NYSE: GM) closed higher on Wednesday, after the U.S. Department of Health and Human Services (HHS) said that it awarded the automaker a contract to produce hospital ventilators for the national stockpile.

After moving up for much of the day, GM's shares closed at $23.13 on Wednesday, up 8.6% from Tuesday's closing price.

In an early-morning announcement, HHS said that GM will build 30,000 ventilators for the U.S. Strategic National Stockpile by the end of August, with the first 6,132 units to be delivered by June 1. GM will receive $489.4 million for the ventilators, or about $16,300 per unit. At retail prices, hospital ventilators can cost as much as $50,000, depending on features.

Source Fool.com