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Pence Boosts Hopes In Lordstown, Workhorse Stock With Comments On Idled GM Plant

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Pence Boosts Hopes In Lordstown, Workhorse Stock With Comments On Idled GM Plant

Workhorse Group Inc (NASDAQ: WKHS) stock was soaring oWednesday after Vice President Mike Pence told reporters the company has secured financing to buy an idled auto plant in Lordstown, Ohio to build electric trucks.

The excitement around the stock was being matched in the northeast Ohio community, which saw General Motors Company (NYSE: GM) close the Lordstown plant, producing its last Chevrolet Cruze on March 6 and putting 1,500 people out of work.

Cincinnati-based Workhorse hasn't publicly confirmed Pence’s assertion, though GM confirmed in May that it was in negotiations to sell the plant to Workhorse.

"Workhorse, I learned, just this week, secured the financing to move forward to keep jobs in that community, and we’re going to continue to look for ways to support that,” Pence said Tuesday during a trip to Lancaster, Ohio, near Columbus, to mark a groundbreaking for another auto industry business.

The Business Journal in Youngstown reported that the plan to buy the plant would require Workhorse to raise about $300 million.

Lordstown Mayor Arno Hill told the Business Journal that he hasn’t heard yet from Workhorse or GM about the funding.

“I’ve heard so many rumblings and so many things that right now I’m just waiting to hear from the UAW and GM,” Hill said.

Workhorse Shares Jump

Workhorse shares were rallying by 15.93% to $5.24 at the time of publication Wednesday. 

Related Links:

Workhorse Group Raises $25M To Fund R&D, Completion Of Electric Van

New life for Lordstown? Workhorse in talks to acquire shuttered GM facility

Public domain photo via Wikimedia

Posted-In: automotive electric vehicles Lordstown Mike Pence The Business JournalNews Media Best of Benzinga

 

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