GM Sells Lordstown Plant That Became Flash Point for Trump, UAW
November 07 2019 - 4:36PM
Dow Jones News
By Mike Colias
General Motors Co.'s closed Lordstown, Ohio, assembly plant --
which became a flash point for President Trump and unionized
workers angry over the company's factory closures -- has a new
owner.
GM has sold the factory to a new electric-truck maker, Lordstown
Motors Corp., for an undisclosed amount, the startup company said
Thursday. Lordstown Motors said it is seeking investment to begin
production in late 2020 of electric pickup trucks, aimed at
business and government customers. Its first model will be called
the Endurance.
GM disclosed in May it was in talks to sell the plant to the
newly formed manufacturer, saying the move would preserve jobs as
the auto industry transitions from traditional gas-powered vehicles
to those running on electricity. That news was lauded by President
Trump, who had urged GM to keep the factory open and salvage jobs
in the politically pivotal state.
During recent contract negotiations, officials with the United
Auto Workers -- the union representing workers at the factory --
unsuccessfully pressed GM to earmark a different model to the
Lordstown plant to keep it open. Instead, the new four-year
contract ratified by GM factory workers last month after a 40-day
strike paved the way for GM to close or sell the plant.
The electric-truck startup plans to use union labor but has yet
to have contract discussions with the UAW, said Steve Burns,
Lordstown Motors' chief executive.
The Lordstown factory will employ roughly 400 workers to start,
Mr. Burns added. He expects pay to be competitive with wages
workers had been making under GM ownership, which ranged from about
$17 an hour to $30 an hour.
(END) Dow Jones Newswires
November 07, 2019 16:21 ET (21:21 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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