Reuters revealed today very interesting news that General Motors agreed to loan $40 million to Lordstown Motors, the start-up that acquired the shuttered GM's Lordstown Complex in Ohio.
Even more interesting is that the plant and equipment were purchased for $20 million, which would mean that Lordstown Motors basically got the plant and has $20 million to start development of the Lordstown Endurance electric pickup truck and look for an investor (as GM itself does not participate in the project).
The deal reportedly can be expanded to $50 million.
We guess that investors with some three-digit million dollar amount will be required to launch the product.
"General Motors Co (GM.N) confirmed on Monday it agreed to loan $40 million to an electric vehicle start-up to facilitate the acquisition of its shuttered Lordstown Assembly plant in Ohio.
Lordstown Motors Corp, which is 10% owned by Workhorse Group Inc (WKHS.O), bought the plant and equipment for $20 million in November as part of its ambitious plan to begin building electric pickup trucks by the end of 2020."
"“We structured the sales agreement to help support Lordstown Motors’ launch plans for the Endurance pickup,” GM spokesman Jim Cain said, who added it “allows them to take possession of the plant and to cover some operating expenses while they undertake their capital raise.”"
To make things happen, Lordstown Motors hired Rich Schmidt, a former director of manufacturing at Tesla, which is now Chief Production Officer.
The company's website lists the main features of the upcoming vehicle:
Meets or exceeds performance of the most popular full-size pickups in the market, plus:
- All-electric range up to 250+ miles per charge
- Tighter turning radius
- Greater traction
- Fewest moving parts
- Extended brake life due to re-gen braking
- No oil changes
- No emissions
- Extra-large frunk storage
- High output accessory/tool power
- Lowest total cost of ownership
- Fleet proven technology
- True Four-Wheel Drive in our standard model (starting at $52,500)
- Attractive leasing options available
- Pre-order now and get the auto-braking (crash avoidance) option at no extra charge