Market Overview

Trump Says GM Is Selling Lordstown Plant To Workhorse

Trump Says GM Is Selling Lordstown Plant To Workhorse

Workhorse Group Inc (NASDAQ: WKHS) surged 40 percent Wednesday morning after President Donald Trump claimed it would purchase General Motors Company (NYSE: GM)’s Lordstown plant.

According to a presidential tweet, GM CEO Mary Barra struck an agreement with the UAW to sell the Ohio plant for electric truck production.

Trump also reported GM spending of $700 million in three Ohio sites to create 450 jobs.

Genearl Motors confirmed discussions with Workhorse and "an affiliated, newly formed entity."

“We remain committed to growing manufacturing jobs in the U.S., including in Ohio, and we see this development as a potential win-win for everyone,” Barra said in a press release. “Workhorse has innovative technologies that could help preserve Lordstown’s more than 50-year tradition of vehicle assembly work.”

Upon completion of a deal, Workhouse would own a minority stake in the new entity and could immediately prepare the facility for electric vehicle assembly.

GM also confirmed a $700 million investment to create 450 jobs in the Moraine DMAX plant, Toledo Transmission and Parma Metal Center.

“We also expect to bring more jobs to the U.S. over time in support of the expected provisions of the USMCA,” Barra said.

Management expects the two developments to address recent criticisms.

Plant closures have been a sore spot in GM's relationship with both Trump and the UAW. Against the protests of both, GM shuttered Lordstown to adjust its product line and had shifted 1,435 hourly workers in the process. It has been in talks with the UAW over the closure since November.

Related Links:

What To Know About GM, Lordstown And Trump

GM Still Riding Strong Truck Demand, But What's Down The Road?

General Motors CEO Mary Barra announces the completion of 130 autonomous Chevrolet Bolts at the Orion Assembly plant in Lake Orion, Michigan. Photo by Dustin Blitchok.

Posted-In: Donald Trump Lordstown Mary BarraNews Rumors Asset Sales Best of Benzinga


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