General Motors Co. announced on Thursday that it sold its Lordstown plant in Ohio to an electric-truck start-up that has a plan to begin building its e-pickup trucks by the end of 2020.
The company sold its 6.2 mn square foot facility to Lordstown Motors, which is supported by an electric truck maker Workhorse Group. The amount of the sale and the startup date for the production has also been not disclosed.
The Ohio plant sale by GM has become a magnet for criticism in the upcoming 2020. The company’s plant, which ended its operations in March, will remain uncertain untill the Detroit automaker reaches a new contract with the United Auto Workers union in the last month.
The company is working on the engineering a new truck named Endurance and is hired by Rich Schmidt, who is was former director of manufacturing at Tesla, as a chief production officer.
General Motors said that it believes LMC plans to introduce the Endurance electric pickup to make a substantial number of jobs that will help the Lordstown area to grow into a production hub for electric trucks.
Lordstown Motors CEO, Steve Burns said the company will locate its headquarters in the Lordstown plant and to build the Endurance pickup truck with an experienced workers who can help to produce millions of vehicles in the same plant. He also said that the people of Lordstown and the plant will be the history and future of the automotive industry.
Burns added the company has been working on the new truck for the past six months and also acknowledged the timetable. Although he further said that the company has an advantage that the Ohio plant is still warm and fully intact.
He declined to say how much the company has raised to hire the engineers and the management team to acquire the factory. He also said the serious and the additional financing had started on Thursday and also looking for strategic stakeholders.