General Motors Co. is in talks to sell its Lordstown, Ohio, complex to Cincinnati-based Workhorse Group Inc., a deal that has the potential to bring significant production and electric vehicle assembly jobs to the plant.
GM made the announcement an hour after President Donald Trump tweeted news of the potential deal, sending Workhorse's stock soaring.
“The first vehicle we would plan to build if we were to purchase the Lordstown Complex would be a commercial electric pickup, blending Workhorse's technology with Lordstown's manufacturing expertise,” Workhorse CEO Duane Hughes said in a statement.
Upon final agreement with all parties, work could begin immediately to prepare the facility for new production. In the deal, GM would sell the facility to an affiliated, newly formed entity led by Workhorse founder Steve Burns. Workhorse would hold a minority interest in the new entity.
Last November, GM announced a plan to save $6 billion by the end of 2020, which included the closure of Lordstown and two other assembly plants. Lordstown halted production in March.
Since then, GM has been in discussions with the UAW regarding the impact of changing market conditions on the Lordstown facility. These discussions will include the opportunity with Workhorse.
“We remain committed to growing manufacturing jobs in the U.S., including in Ohio, and we see this development as a potential win-win for everyone,” GM CEO Mary Barra said. “Workhorse has innovative technologies that could help preserve Lordstown's more than 50-year tradition of vehicle assembly work.”
GM also announced Wednesday that it is creating 450 new manufacturing jobs in Ohio at its facilities in Toledo, Moraine and Parma.
Workhorse Group has raised a total of $1.4 million in funding from a post-IPO equity round raised on May 3, 2018, according to Crunchbase.
