On Thursday, General Motors Co has confirmed the procurement of its shuttered Lordstown Assembly plant in Ohio. The buyer us a start-up company that has an aim to start developing electric pickup trucks by the end of 2020. Workhorse Group Inc is 10% owner of Lordstown Motors Corp. Reportedly, it has retained an Ohio investment bank and is functioning to raise more capital. Notably, the news has boosted shares by 22%. Still, the amount of sales remains a mystery. Even more, a start-up date for production remains unclear. Lordstown Motors said it would develop the Endurance electric pickup using components licensed from the workhouse.
The company noted it has specially crafted the Endurance to sell in groups. As per the manufacturer, the truck is lightweight, along with an all-wheel-drive vehicle with a low center of gravity. Even more, the Endurance is the brand new electric pickup in the works. Lordstown Motors has also appointed Rich Schmidt as chief production officer who has served as a director of manufacturing at Tesla Inc. Burns, a former Workhorse CEO, said the company has been functioning on creating the new truck for the past six months. The executive also noted that it is buying GM’s Ohio plant is an advantage because it is fully intact and still warm. Burns has anticipated having pre-production prototypes arrival of the assembly line until April. Maybe the company will start production by November 2020 with 400 hourly workers.
For now, Lordstown Motors has the capital to purchase the plant and work on the vehicle. But it will require some financial support to continue the development, conduct crash, and safety testing, gain approval for sale, and retool the facility. On the other hand, GM has said it trusts LMC’s plan to launch the Endurance electric pickup and has the capacity to build a substantial number of jobs. The effort will help in the development of the Lordstown region and transform it into the manufacturing hub for electrification. Currently, GM has not offered any financial backup to the venture.
Kevin has worked as a business executive in an insurance firm before joining Janmorgan Media as the major business correspondent. After joining here, he has helped craft not only some of the insightful articles but also regular articles that don’t compromise perspective. If not checking out business publications or news, you can see her listening to music.