General Motors announced today that is in discussions with Cincinnati-based Workhorse Group and an affiliated, newly formed entity to sell the company’s Lordstown Complex in Lordstown, Ohio.

"The move has the potential to bring significant production and electric vehicle assembly jobs to the plant. Upon final agreement, the entity, led by Workhorse founder Steve Burns, would acquire the facility. Workhorse would hold a minority interest in the new entity."

We are not surprised about the talks, as GM currently has surplus of manufacturing plants, but we didn't expect that Workhorse would be interested in such a big facility, especially after news about financial setbacks and the postponed pickup truck project.

The latest message from Workhorse was that the company will focus on the production of N-GEN electric delivery vans at its plant in Union City, IN in partnership with Prefix Corporation.

According to GM's press release, Workhorse's intention is to produce not only electric vehicles but particularly an electric pickup! Workhorse W-15? But are there investors to launch such an expensive project in parallel to N-GEN?

Workhorse CEO Duane Hughes said:

“This potential agreement creates a positive outcome for all parties involved and will help solidify the leadership of Workhorse’s role in the EV community,”.

Workhorse founder Steve Burns 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.”


Besides the two parties, the deal probably needs to be accepted also by UAW:

"Since last November, GM has been in discussions with the UAW regarding the impact of changing market conditions on the Lordstown facility. These discussions will include this opportunity.

“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,” said Mary Barra, GM chairman and CEO. “Workhorse has innovative technologies that could help preserve Lordstown’s more than 50-year tradition of vehicle assembly work.”

Upon final agreement with all parties, work could begin immediately to prepare the facility for new production.

At the same time, GM announced investments in three other manufacturing facilities in Ohio: in Toledo, Moraine and Parma, creating a total of 450 new jobs.

Source: General Motors, Reuters

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