GM confirms its sale of shuttered Lordstown plant
General Motors Co. confirmed Thursday it has sold its shuttered Lordstown Assembly plant in Ohio to a start-up that has an ambitious plan to begin building electric pickup trucks by the end of 2020.
Lordstown Motors Corp., which is 10 percent owned by Workhorse Group Inc., has retained Ohio investment bank Brown Gibbons Lang & Co. and is working to raise additional capital, Lordstown Chief Executive Steve Burns said in an interview. Workhorse shares closed up 27 percent on the news.
The fate of the northeastern Ohio plant has become a lighting rod in the 2020 presidential election after GM announced in November, 2018, its planned closure, drawing condemnation from President Trump and many U.S. lawmakers.
The fate of the plant, which ended operations in March, remained uncertain until the Detroit automaker reached a new contract with the United Auto Workers union last month.
The company has been working on the engineering of the new truck called Endurance and hired Rich Schmidt, a former director of manufacturing at Tesla Inc., as chief production officer.
GM said Thursday it believes “LMC’s plan to launch the Endurance electric pickup has the potential to create a significant number of jobs and help the Lordstown area grow into a manufacturing hub for electrification.”
GM is not investing in the venture. The purchase price was not disclosed, but sources said it was similar to EV start-up Rivian Automotive LLC’s 2017 acquisition of an old Mitsubishi plant in Normal, Ill., for $16 million. Mr. Burns said the firm got a “great deal” after 10 months of talks with GM.
Mr. Burns, an ex-Workhorse CEO, said the firm has been working on engineering the new truck for the last six months but acknowledged the timetable is “aggressive.” However, he said the firm has an edge because the Ohio plant is “fully intact, still warm.”
He said he hopes to have preproduction prototypes coming off the assembly line by April and start production by November, 2020, with 400 hourly workers to start.
“When you live in a factory area and the factory closes, there is a lot of pain there,” he said, adding it wants to build for the long term. “This should be the electric epicenter of the Midwest if you do it right.”
Mr. Burns declined to say how much money the company has raised but said they have raised enough to hire the management team and engineers and acquire the factory. He said “the serious” effort to raise additional financing began on Thursday, and he is looking for new strategic investors.
The fate of the 6.2-million-square-foot Lordstown plant has been a major focus for President Trump, who in June 2017 advised workers in nearby Youngstown that factory jobs were not leaving. “Don’t move, don’t sell your house,” he said.
GM last month said it plans an electric battery-cell plant near the Lordstown complex that could employ 1,000 people. Sources have said the battery plant would be a joint venture, where the workers are represented by the UAW and earn in the range of $15 to $17 an hour.
Posted By: The Toledo Blade on November 7, 2019. For more information, please click here to read the source article.
To receive the In The Know from Signature Associates, please click here to be added to our mailing list.
« Back to News
Did you know?
- In 2018, Signature completed more than 1,129 transactions totaling 29.8 million square feet and 1,494 acres with a total value of $969 million.
- Signature Associates has 6 veterans or active duty military officers.
- Almost 60% of Signature’s professionals have been with the firm at least 10 years.
- Signature completed more than 1,129 transactions in 2018.
- Signature loves animals! Over 60 professionals have dogs and 20 professionals have cats and collectively we’ve raised thousands of dollars in the last year alone for area animal shelters.
- Signature is featured as: Best & Brightest Companies to Work For 2018 & 2017, Cool Places to Work 2018, 2017 & 2016, and Top Workplaces 2018, 2017, 2016, 2015 & 2014
- Signature Associates and its team donate time and money to over 40 organizations throughout Michigan, Ohio and the United States.
- Signature Advisory and Management Services team performed comprehensive construction management services for projects totaling over $60 million and managed more than 8 million square feet of commercial space for our third-party clients, making us the largest locally owned third-party property management firm in the market.
- Signature Associates has completed more industrial leases than any other brokerage firm.
- Signature Team Cares was formed in January 2017 to help further our efforts and long history of partnering with local organizations to improve lives and to benefit our communities.