GM News: GM Selling Lordstown to Electric Truck Maker Workhorse

[Drew Dowdell]

In a series of tweets today, Trump announced that General Motors will be selling their Lordstown plant to electric truck maker Workhorse.  Lordstown was shut down in March of this year and formerly built the Chevrolet Cruze.  The details of the plant sale have not yet been announced.

Workhorse is a Cincinnati based company who builds EV pickups with a built in range extender, similar in concept to the Chevrolet Volt.  Workhorse's sole model is the W-15, capable of driving up to 80 miles on a charge before a gasoline powered range extender kicks in. It uses two motors to provide all-wheel drive. The only configuration available is an extended cab with 6.5 foot bed. They can tow up to 5,000 lbs and have a payload of 2,200 lbs.  Pricing starts at $54,500 before tax credits. 

Workhorse intends to start production for the retail market sometime in 2019.  Fleet orders have already started. 

GM is not denying any of the information in the tweets from Trump. 

Update: General Motors has confirmed that talks are ongoing.

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[G. David Felt]

This is good news, Always liked the idea of the Workhorse, but the front reminds me of a weird cross breeding between Ford with the headlights and the Ugly Honda pickup. Very weird style.

I would take a Rivian over this, but this is also interesting, wonder how they will sell retail and where would one go much like Rivian to check it out and see if I fit inside. ?

[Drew Dowdell]

I don't know how Workhorse, which has been losing lots of money, is going to afford to buy the plant much less keep the lights on.  Lordstown was greatly underutilized when they were building ~250k Cruzes a year there.  How many trucks can Workhorse think they're going to sell with no dealer network.... even at that price.  

[A Horse With No Name]

18 minutes ago, Drew Dowdell said:

I don't know how Workhorse, which has been losing lots of money, is going to afford to buy the plant much less keep the lights on.  Lordstown was greatly underutilized when they were building ~250k Cruzes a year there.  How many trucks can Workhorse think they're going to sell with no dealer network.... even at that price.  

Nothing good will come of any of this. That plant has a better chance of reverting to wilderness than building more cars.

[Drew Dowdell]

7 minutes ago, A Horse With No Name said:

Nothing good will come of any of this. That plant has a better chance of reverting to wilderness than building more cars.

I won't be surprised when I have to write the article "Talks between Workhorse and GM fell through after Workhorse was unable to obtain financing...."

[balthazar]

2 hours ago, Drew Dowdell said:

IWorkhorse is a Cincinnati based company who builds EV pickups….

 

'builds'… or 'is planning to build'?

[Robert Hall]

I wonder if GM will sell the plant to Workhorse for $1.  I read that Workhorse had $736k in revenue last year, and only $38 mil in losses, or something like that..market value of $109 mil.

Saw that they were a penny stock, had a big surge today.

https://www.cnbc.com/2019/05/08/trump-tweet-sends-penny-stock-workhorse-surging-by-more-than-50percent-crashes-website.html

Smoke and mirrors?

 

GM clarified they are in talks..nothing concrete announced yet.

Edited May 8, 2019 by Robert Hall

[A Horse With No Name]

4 hours ago, Drew Dowdell said:

I won't be surprised when I have to write the article "Talks between Workhorse and GM fell through after Workhorse was unable to obtain financing...."

Well...both Cincinnati and Cleveland have lots of established Mafia. Financing is available...but not even sure the Mafia would take this bet.

No more vehicles than they will sell they probably could move production to the guard shack.

4 hours ago, balthazar said:

'builds'… or 'is planning to build'?

Builds in a tangential alternative reality...

3 hours ago, Robert Hall said:

I wonder if GM will sell the plant to Workhorse for $1.  I read that Workhorse had $736k in revenue last year, and only $38 mil in losses, or something like that..market value of $109 mil.

Saw that they were a penny stock, had a big surge today.

https://www.cnbc.com/2019/05/08/trump-tweet-sends-penny-stock-workhorse-surging-by-more-than-50percent-crashes-website.html

Smoke and mirrors?

 

GM clarified they are in talks..nothing concrete announced yet.

It will get re developed into low income housing. So much winning....

[Robert Hall]

Before the electric truck, they built step vans (former GM model) going back to '98, and RV chassis, apparently Navistar owned them or part of them at one time.

Edited May 9, 2019 by Robert Hall

[A Horse With No Name]

Interesting...

[daves87rs]

16 hours ago, Drew Dowdell said:

I don't know how Workhorse, which has been losing lots of money, is going to afford to buy the plant much less keep the lights on.  Lordstown was greatly underutilized when they were building ~250k Cruzes a year there.  How many trucks can Workhorse think they're going to sell with no dealer network.... even at that price.  

Well, unless they come out with a lineup of stuff this would be a major fail.....

[ccap41]

The truck itself sounds like a great truck for local municipalities. 

Good to hear a factory isn't going to be left alone. We have one local that was a Chrysler plant that has been empty for about a decade now in Fenton, MO. It's also good to hear that, I assume, the company is taking off to the point of needing larger production capacity. 

[G. David Felt]

@Drew Dowdell @Robert Hall @A Horse With No Name @balthazar

Seems the Union is not going to let this happen, they want GM to give them a auto to build. Seems GM is tied up with the UAW for a while and Workhorse will have to take over the union contracts if they buy the plant. 

I do not see that happening. Good read at Bloomberg.

https://www.bloomberg.com/news/articles/2019-05-08/trump-gm-reaction

[smk4565]

21 hours ago, Drew Dowdell said:

I don't know how Workhorse, which has been losing lots of money, is going to afford to buy the plant much less keep the lights on.  Lordstown was greatly underutilized when they were building ~250k Cruzes a year there.  How many trucks can Workhorse think they're going to sell with no dealer network.... even at that price.  

That is a big factory having driven past it many times, it can probably produce 500k units per year if it was running at full capacity.  I don’t see how Workhorse would sell that many vehicles, even if they add a van to the mix with the pickup.

That isn’t a good looking truck, it has a low EV range and a high price.  If they make that truck $34,000 before tax credits, game on.

[smk4565]

20 hours ago, Robert Hall said:

I wonder if GM will sell the plant to Workhorse for $1.  I read that Workhorse had $736k in revenue last year, and only $38 mil in losses, or something like that..market value of $109 mil.

Saw that they were a penny stock, had a big surge today.

https://www.cnbc.com/2019/05/08/trump-tweet-sends-penny-stock-workhorse-surging-by-more-than-50percent-crashes-website.html

Smoke and mirrors?

 

GM clarified they are in talks..nothing concrete announced yet.

GM probably would sell it for $1.  The building anyway, GM May want the equipment inside of it.  But the maintenance, upkeep, security, utilities  and property tax bill on Lordstown has to be huge.  They are probably spending a million dollars a month just to hold on to it, which granted isn’t a lot by GM standards but still I am sure they want to off load it fast.

[Scout]

The Workhorse needs a full crew cab option to become viable to the masses. If they did that they could become a player outside of fleet buyers. And weren't these supposed to be able to the public a long time ago. I see it like VIA, lot of empty promises. 

 

For good or bad at least Tesla has things you can actually go and buy. 

[A Horse With No Name]

2 hours ago, dfelt said:

@Drew Dowdell @Robert Hall @A Horse With No Name @balthazar

Seems the Union is not going to let this happen, they want GM to give them a auto to build. Seems GM is tied up with the UAW for a while and Workhorse will have to take over the union contracts if they buy the plant. 

I do not see that happening. Good read at Bloomberg.

https://www.bloomberg.com/news/articles/2019-05-08/trump-gm-reaction

Given Ohio's obesity rate, maybe converting it into the worlds largest food court makes more sense. The food workers union is easier to work with than the UAW, or so I am told. 

1 hour ago, smk4565 said:

GM probably would sell it for $1.  The building anyway, GM May want the equipment inside of it.  But the maintenance, upkeep, security, utilities  and property tax bill on Lordstown has to be huge.  They are probably spending a million dollars a month just to hold on to it, which granted isn’t a lot by GM standards but still I am sure they want to off load it fast.

The liability politically and with the unions is greater than a million a month. 

 

[riviera74]

I do hope that GM makes the sale.  The new guys can tell the UAW to shove it.

[A Horse With No Name]

2 hours ago, riviera74 said:

I do hope that GM makes the sale.  The new guys can tell the UAW to shove it.

Again...would not matter if it was oompah loompas from Charlie and the Chocolate factory or UAW members...that plant has produced its last vehicle.