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  • Drew Dowdell
    Drew Dowdell

    GM Selling Lordstown to Electric Truck Maker Workhorse

      ...Trump announced the sale in a series of tweets...

    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.

    Edited by Drew Dowdell

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    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. 🤔

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    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.  

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    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.

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    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...."

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    2 hours ago, Drew Dowdell said:

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

     

    'builds'… or 'is planning to build'?

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    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 by Robert Hall
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    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....

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    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.

    5aeba10325e69f444d370924.jpg

    Edited by Robert Hall
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    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.....

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    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. 

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    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.

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    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.

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    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. 

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    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. 

     

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    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.

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      QUARTER 4 (CALENDAR YEAR-TO-DATE) JANUARY - DECEMBER   2019 2018 %Change Volume   2019 2018 %Change Volume   Cascada 77 743 -89.6   2,535 4,136 -38.7   Enclave 10,143 14,420 -29.7   51,156 49,647 3.0   Encore 28,497 23,326 22.2   102,402 93,073 10.0   Envision 8,380 7,535 11.2   33,229 30,152 10.2   LaCrosse 463 2,118 -78.1   7,241 15,527 -53.4   Regal 1,514 3,110 -51.3   10,363 14,118 -26.6   Buick Total 49,074 51,257 -4.3   206,929 206,863 0.0   ATS 83 831 -90.0   1,134 10,859 -89.6   CT5 43 0 ***.*   43 0 ***.*   CT6 2,276 2,398 -5.1   7,951 9,668 -17.8   CTS 966 2,442 -60.4   6,965 11,219 -37.9   Escalade 8,889 9,573 -7.1   35,424 36,872 -3.9   XT4 8,895 7,573 17.5   31,987 7,785 310.9   XT5 11,168 13,582 -17.8   49,879 60,565 -17.6   XT6 7,169 0 ***.*   11,559 0 ***.*   XTS 1,062 5,063 -79.0   11,304 17,727 -36.2   Cadillac Total 40,551 41,462 -2.2   156,246 154,702 1.0   Blazer 23,008 27 ***.*   58,115 27 ***.*   Bolt EV 3,307 6,212 -46.8   16,418 18,019 -8.9   Camaro 11,474 11,135 3.0   48,265 50,963 -5.3   Colorado 25,484 30,004 -15.1   122,304 134,842 -9.3   Corvette 3,491 3,910 -10.7   17,988 18,791 -4.3   Cruze 2,699 32,955 -91.8   47,975 142,617 -66.4   Equinox 92,092 98,239 -6.3   346,048 332,618 4.0   Express 16,652 22,543 -26.1   77,457 81,239 -4.7   Impala 9,545 12,604 -24.3   44,978 56,556 -20.5   LCF 1,273 940 35.4   4,495 2,810 60.0   Malibu 34,314 37,084 -7.5   131,917 144,542 -8.7   Silverado HD 36,704 34,222 7.3   131,953 142,632 -7.5   Silverado LD 124,619 126,950 -1.8   438,686 442,943 -1.0   Silverado MD 2,018 6 ***.*   4,961 6 ***.*   Sonic 3,339 2,765 20.8   13,971 20,613 -32.2   Spark 11,016 5,174 112.9   31,281 23,602 32.5   Suburban 10,242 15,200 -32.6   51,928 60,633 -14.4   Tahoe 21,086 24,679 -14.6   101,189 104,153 -2.8   Traverse 33,631 39,536 -14.9   147,122 146,534 0.4   Trax 33,039 22,378 47.6   116,816 89,916 29.9   Volt 370 5,063 -92.7   4,910 18,306 -73.2   Chevrolet Total 499,404 531,985 -6.1   1,958,925 2,036,023 -3.8   Acadia 19,471 25,128 -22.5   99,429 88,621 12.2   Canyon 6,525 8,219 -20.6   32,825 33,492 -2.0   Savana 3,136 2,905 8.0   24,226 19,684 23.1   Sierra HD 18,228 16,550 10.1   59,871 60,389 -0.9   Sierra LD 50,494 50,762 -0.5   172,452 159,165 8.3   Terrain 28,060 31,595 -11.2   101,470 114,314 -11.2   Yukon 20,966 25,366 -17.3   74,673 80,784 -7.6   GMC Total 146,880 160,525 -8.5   564,946 556,449 1.5   GM Vehicle Total* 735,909 785,229 -6.3   2,887,046 2,954,037 -2.3                     78 selling days for the QUARTER 4 this year and 77 for same QUARTER last year.  
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