Deal to sell GM Lordstown plant to electric vehicle company becomes finalized, report says

Deal to sell GM Lordstown plant to electric vehicle company becomes finalized, report says

CLEVELAND, Ohio (WOIO) - General Motors finalized the sale of the Lordstown plant to a startup company that will use the facility to build electric vehicles.

According to a report from Bloomberg, the facility has been sold to the Lordstown Motors Corp., an electric truck startup company specifically formed to take over the shuttered plant.

The Lordstown Motors Corp. shares affiliation with the Cincinatti-area electric truck manufacturer, the Workhorse Group.

Cincinnati-area based vehicle manufacture Workhorse Group.

Ohio Gov. Mike DeWine and state legislators weighed in on the reported deal.

“I am very encouraged that the Lordstown plant has been acquired by Lordstown Motors Corporation. I am extremely proud of the men and women who helped build the General Motors brand of vehicles at the Lordstown Complex. Electric vehicles are the future of transportation, and my goal is to make sure these vehicles are built right here in Northeast Ohio. I will continue to fight to bring jobs back to this facility and the district—which has and will always be my top priority. I stand ready to help this new company start building electric trucks in the Valley and put Northeast Ohioans back to work. In addition to building electric vehicles, I am also working to ensure that Northeast Ohio is at the forefront of electric vehicle components such as batteries and fuel cells.”
U.S. Congressman Tim Ryan
“Since GM first announced its intentions to discontinue Chevy Cruze production, I have pushed hard for the company to do the right thing and bring a new GM product to Lordstown. GM instead chose to sell the facility to Lordstown Motors, which it says is the best option for the future of the plant. I agree that Lordstown Motors has the potential to create some much-needed jobs in the Mahoning Valley with cutting-edge electric vehicle technology, but the chances of that happening are much better if GM invests in this new venture to help ensure its success and a new path for Lordstown. I will continue to work with community leaders to do whatever I can to return the Lordstown plant to its full potential."
U.S. Sen. Rob Portman

The sticking point to this deal right now is that Lordstown Motors is not currently funded, they are a startup company that will be looking for investors.

Ohio State Senator Sean O’Brien represents the area.

“Purchasing it from G.M. is the first big step, now the next is raising money, so we’re moving in the right direction, we’re being cautiously optimistic,” O’Brien said.

Senator Rob Portman urged General Motors to invest in the Lordstown Motors startup but according to Senator O’Brien, G.M. has no plans of investment.

"I talked to them about that and at this time they’re not going to do that.

The United Automobile Workers union wasn’t able to convince GM to keep the plant as part of the new labor contract that was ratified in October.

Terms of the sale between GM and the Lordstown Motors Corp. have not been released.

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