General Motor's highly politicized manufacturing facility in Ohio has just been acquired by an electric-truck startup company. GM's Lordstown factory will reportedly be revived as a high-end manufacturing facility that will be producing electric vehicles, a fitting transformation that will be continuing the legacy of the iconic plant which was originally opened in 1966.
The acquisition of the facility by Lordstown Motors Corp, a company that was specifically built to save the Ohio factory, was made official on Thursday. The company as formed to save the factory from its fate of being decommissioned after the United Auto Workers (UAW) union failed to convince GM to keep the factory open.
Lordstown Motors will be led by former Workhorse executive Steve Burns. The company is an affiliate of Workhorse Group Inc. Burns will be acting as the electric startup's new chief executive officer. In a statement made after the acquisition announcement, Burns revealed that the next phase of the company's plan will be to raise capital to transform the Lordstown plant from making GM's gas-powered Chevrolet Cruze sedans to producing advanced plug-in and electric pickup trucks.
Following the news of the acquisition, Workhorse Group saw its stock prices surge by as much as 27 percent in New York. Workhorse had been in talks with GM to acquire the Lordstown plant since May.
Lordstown Motors's debut model will be its plug-in pick truck called the Endurance. The truck is aimed t fleet buyers, which make up a significant chunk of the US truck market. Lordstown Motors, through Workhorse, is also aiming to win the bid to supply trucks to the US Postal Service.
If the company does win the government contract, the Ohio factory could be dedicated to fulfilling that order. However, part of the facility's capacity will also be dedicated to building Workhorse's 6,000 existing pre-orders for its W-15 electric trucks.
Burns had mentioned that if the company does manage to raise the capital it needs, he will be working with the UAW to hopefully hire some of the factory's former workers. Burns explained that they want to hire experienced vehicle assemblers, who they can train to build their next-generation vehicles.
In an emailed statement following the acquisition, GM stated that it is still committed to job growth and development in Ohio. The company expressed its belief that the deal with Lordstown Motors should create more jobs and help the area grow to become one of the leading manufacturing hubs for the US' inevitable electrification.
