GM plant's future buyer reportedly 'exists only on paper'

[mahatmakanejeeves]

GM plant’s future buyer reportedly ‘exists only on paper’

Published: May 29, 2019 7:48 a.m. ET

Venture is connected with Workhorse, whose shares have risen 109% so far in May

By CLAUDIA ASSIS
REPORTER

The planned buyer for General Motors Co.’s Lordstown plant in Ohio, which made news earlier this month when President Donald Trump beat GM to the punch and tweeted about the potential deal, exists “almost entirely on paper,” the New York Times said in a report Tuesday.

The new venture would be affiliated with the obscure Workhorse Group Inc., makers of electric trucks and aircraft. Its name remains under wraps. According to the Times, the venture is led by founder and former Workhorse Chief Executive Steve Burns, and the business would have to raise at least $300 million to get the plant running again.

Burns would not tell the Times whether any money has been raised or committed from any other investors, according to the report. Workhorse would have a minority stake in the entity. The company did not immediately return a request for comment.

GM said in early May it was in “discussions” to sell the Lordstown plant to Workhorse and an “affiliated, newly formed entity that could bring significant production and electric vehicle assembly jobs” to the area, as part of a multimillion-dollar investment in Ohio.
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[DURHAM D]

1. Pick me. I know the answer.

Russians

[mahatmakanejeeves]

2. With His Job Gone, an Automaker Wonders, "What Am I as a Man?"

Sabrina Tavernise Retweeted

" In Mr. Marsh’s area of the paint shop, nicknamed Cripple Creek, someone had written on the wall how many workers there were each year. In 1970 it was 38. By the time he left in the early 2000s, it was four."

Link to tweet

“It’s another flagrant sign that these people, they really don’t have a clue,” he said of the country’s political class. “They are so out of touch with reality and real people. All of them.”
always well told from @stavernise

Link to tweet

[mahatmakanejeeves]

3. Workhorse electric truck looking at Lordstown plant

Eastern Railroad Discussion > OH: Workhorse electric truck looking at Lordstown plant
Date: 06/17/19 06:16
OH: Workhorse electric truck looking at Lordstown plant
Author: Lackawanna484

NY Times reported last week that struggling electric truck maker Workhorse is considering buying the (former) GM Lordstown OH plant. The truck maker recently received a cash infusion, which allowed it to avoid a shut down.

The article has a description of how UPS and others fit into the picture. If this happens, it should mean an increase in business for CSX and NS.

https://www.nytimes.com/2019/06/10/business/workhorse-investor-fund-raising.html