Donald Trump Leaks Possible Sale of GM's Lordstown Complex to Workhorse

Fredrick Soto
May 11, 2019

Workhorse shares jumped almost 70 percent on Trump's tweet and were briefly halted.

Ryan said he wants to learn more about Workhorse, the Cincinnati-based company wanting to use the plant to build electric trucks. GM came under harsh criticism from Trump and members of Congress after it announced in November it would close five North American asssembly plants and cut 15,000 jobs.

GM closed the plant as it sought to free up cash to develop its own next generation electric and self-driving vehicles.

Rep. Tim Ryan explains why he thinks the possible sale of the GM plant is bittersweet. According to its most recent filings with the SEC, Workhorse now employs 98 workers. The United Autoworkers Union has made it known it isn't in favor of the plant being sold.

"'The UAW's position is unequivocal: General Motors should assign a product to the Lordstown facility and continue operating it, ' said UAW vice president Terry Dittes in a statement", Long reports.

The new entity that would acquire the Lordstown facility would be led by Workhorse founder Steve Burns, and Workhorse would hold a minority interest in it, according to GM. Those talks will not commence until July, making it unsure whether Workhorse will be moving there or not (yet).

Trump repeatedly bashed Barra and demanded that GM either reopen the Lordstown factory or sell it to a company that will.

"GM will also be spending $700,000,000 in OH in 3 separate locations, creating another 450 jobs". If the deal goes through, it could bring "significant production and electric vehicle assembly jobs to the plant", according to GM. Husted called Workhorse a "promising OH company" that would be a "viable" option for Lordstown.

Workhorse is a growing company and would be a great addition to Ohio.

Should the deal transpire, the company, which "makes battery-powered pickup trucks, delivery vans, drones and aircraft, faces big obstacles in getting the Lordstown plant humming again with hundreds working the line".

Workhorse told CNBC that it had been among those finalists being considered for the postal service agreement but wouldn't comment further.

The potential sale, first announced on Twitter by President Donald Trump, could preserve some jobs at the sprawling plant 60 miles east of Cleveland. Its stock shot up 215% yesterday, closing at $2.65, following the Presidential shout-out.

Workhorse only had an average daily volume of 345,127 shares over the past month. From the final bell Wednesday, it's trading volume was around 45.9 million shares.

"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", said CEO Duane Hughes.

How Trump's Tweets Have Impacted The MarketGREAT NEWS FOR OHIO!

General Motors Wednesday announced plans to invest $700 million in OH and to sell a shuttered plant to a company that makes electric trucks, drawing cheers from President Donald Trump who has assailed the U.S. automaker for cutting American jobs. GM's decision to close the small-car OH assembly plant in a key state in the 2020 election had already become fodder for several Democratic presidential candidates. Workhorse was founded by investors who took over the production of GM's P30/P32 series stepvan and motorhome chassis.

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