(Reuters) – General Motors Co. confirmed on Thursday it has sold well, and the shutters in front of the Lordstown plant in Ohio to make a start-up business, which has ambitious plans to begin the construction of an electric pick-up trucks by the end of 2020.
FILE PHOTO: A mural painted on the side of General Motors’ shuttered Lordstown plant at the United Auto Workers (UAW) national strike in the Lordstown, Ohio, united states, September 20, 2019. REUTERS/Rebecca Cook)
Lordstown Motors Corp., which has about 10% in the hands of the Work Group, Inc., it has to keep Ohio’s investment bank, Brown Gibbons Lang & Co., and is working to raise additional capital, Lordstown, Chief Executive Steve Burns said in a recent interview. Shire shares closed up 27% on the news.
The fate of northeastern Ohio, and the plant has grown to become a lighting rod in the 2020 elections, after GM announced in November of 2018, the scheduled closing date, drawing condemnation from US President, Donald Trump, and many of the AMERICAN lawmakers. The fate of the plant, which was shut down by the business in March, it remains unclear the Detroit automaker to reach a new agreement with the United Auto Workers union, in the last few months.
The company has been working on the design of the new truck, called the Endurance, was hired, Rich Schmidt, a former director of production at Tesla, Inc., as the chief officer of the production.
GM said Thursday that it believes in “STATIC” s plan to launch the Car in electric pick-up has the potential to have a large number of jobs, the Lordstown area to become a centre of production for the power.”
The GM is not looking to invest in the company. The purchase price was not disclosed, but sources said that it was very similar to the EV start-up, Rivian Automotive, LLC, 2017, in the acquisition of the former Mitsubishi manufacturing plant in Normal, Ill., for $16 million. Burns said that the company had a “pretty good deal” after about 10 months of talks with GM.
Burns, a former Shire chief executive officer, said the company has been working on the development of a new truck for the last six months, but acknowledged the timetable is “aggressive.” However, he said that the company has the advantage of being in the Ohio plant, it is fully intact, it was still nice and warm.”
Burns is looking forward to pre-production prototypes of the assembly line in April, and will start production in November 2020, with a 400-per-hour employees to begin with.
“If you’re in a factory, and the factory closes, there is a lot of pain in there,” Burns said, saying it wants to build a company for the long term. “This is the electrical center of the Midwest, and if you’re doing a good job.”
Burns declined to say how much money the company has raised, but said that she was educated enough to make the hiring of the management team and the engineers, as well as the acquisition of the plant. He said: “it’s a serious effort to raise additional funding, it started on Thursday, and he has been looking for strategic investors.
The fate of the 6.2-million-square foot Lordstown plant has been a major focus for the Home, which is in June 2017, has advised workers in the nearby Youngstown, Ohio, and in the factories were abandoned. “Don’t move, don’t sell your house,” he said.
GM last month said it was planning an electric-battery cell, a plant in the vicinity of the Lordstown complex, which eventually will be able to use it to 1,000 people. Sources have said that the battery life of the plant, a joint venture company in which the employee may be represented by the UAW, and deserve to be in the range of $15 to $17 an hour.
Report by David Shepardson; Editing by Chris Reese and Jonathan Oatis