Trump Says GM Is Selling Lordstown Plant To Workhorse

Workhorse Group Inc WKHS surged 40 percent Wednesday morning after President Donald Trump claimed it would purchase General Motors Company GM’s Lordstown plant.

According to a presidential tweet, GM CEO Mary Barra struck an agreement with the UAW to sell the Ohio plant for electric truck production.

Trump also reported GM spending of $700 million in three Ohio sites to create 450 jobs.

GREAT NEWS FOR OHIO! Just spoke to Mary Barra, CEO of General Motors, who informed me that, subject to a UAW agreement etc., GM will be selling their beautiful Lordstown Plant to Workhorse, where they plan to build Electric Trucks. GM will also be spending $700,000,000 in Ohio...

— Donald J. Trump (@realDonaldTrump) May 8, 2019

....in 3 separate locations, creating another 450 jobs. I have been working nicely with GM to get this done. Thank you to Mary B, your GREAT Governor, and Senator Rob Portman. With all the car companies coming back, and much more, THE USA IS BOOMING!

— Donald J. Trump (@realDonaldTrump) May 8, 2019

Genearl Motors confirmed discussions with Workhorse and "an affiliated, newly formed entity."

“We remain committed to growing manufacturing jobs in the U.S., including in Ohio, and we see this development as a potential win-win for everyone,” Barra said in a press release. “Workhorse has innovative technologies that could help preserve Lordstown’s more than 50-year tradition of vehicle assembly work.”

Upon completion of a deal, Workhouse would own a minority stake in the new entity and could immediately prepare the facility for electric vehicle assembly.

GM also confirmed a $700 million investment to create 450 jobs in the Moraine DMAX plant, Toledo Transmission and Parma Metal Center.

“We also expect to bring more jobs to the U.S. over time in support of the expected provisions of the USMCA,” Barra said.

Management expects the two developments to address recent criticisms.

Plant closures have been a sore spot in GM's relationship with both Trump and the UAW. Against the protests of both, GM shuttered Lordstown to adjust its product line and had shifted 1,435 hourly workers in the process. It has been in talks with the UAW over the closure since November.

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General Motors CEO Mary Barra announces the completion of 130 autonomous Chevrolet Bolts at the Orion Assembly plant in Lake Orion, Michigan. Photo by Dustin Blitchok.