GM Confirms in Talks With Workhorse on Lordstown Deal
May 08 2019 - 1:27PM
Dow Jones News
By Colin Kellaher
General Motors Co. (GM) on Wednesday confirmed it is in talks to
sell its idled Lordstown plant in Ohio to electric-vehicle maker
Workhorse Group Inc. (WKHS) and an affiliated, newly formed
entity.
Under the plan, the new entity, led by Workhorse founder Steve
Burns, would acquire the facility, while Workhorse would hold a
minority interest in the new firm, the companies said.
"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," Mr. Burns said in a statement.
President Trump earlier Wednesday tweeted that GM's chief
executive, Mary Barra, had told him that the auto maker would sell
the Lordstown plant to Workhorse. GM closed the plant in March as
it ended production of the Chevrolet Cruze sedan.
GM said a deal with Workhorse "has the potential to bring
significant production and electric vehicle assembly jobs to the
plant."
Shares of Workhorse, based in the Cincinnati suburb of Loveland,
rose about 51% to $1.27 in early afternoon trading.
Write to Colin Kellaher at colin.kellaher@wsj.com
(END) Dow Jones Newswires
May 08, 2019 13:12 ET (17:12 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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