Back in early May, we reported that electric truck maker Workhorse was in talks with General Motors to buy the shuttered Lordstown Assembly plant that formerly built the Chevrolet Cruze. The plan seemed founded more on hopes and dreams rather than actual financial reality. Workhorse's only model, the W-15 is a truck with an 80 mile range and a built in range extender, has not exactly been climbing the sales charts. In fact, the company booked only $6,000 in sales in the 2nd quarter of 2019, roughly $70 per day. Following that report, the company's stock plunged 35%. Deliveries of the truck are currently on hold and will resume in the 4th quarter this year. There is currently a $70 Million backlog of orders to fill.
Hopes of a solution for Lordstown coming from Workhorse are dim, but there is one thing that could save the deal: a $6.3 Billion contract from the US Postal Service to build the next generation of mail trucks, though Tom Colton, a spokesman for Workhorse said that the Lordstown deal isn't contingent on the contract from the USPS.
Under the proposed Lordstown deal, a new company would be formed called Lordstown Motors Corp. which would license the Workhorse technology to produce vehicles based on the W-15 model. Workhorse itself would own a minority stake in the company.
The UAW is still in talks with General Motors to reopen the plant and assign new product to it.
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