Lordstown Long Shot? Skepticism salutes talks on GM's battle horses

<img data-attachment-id = "1589750" data-permalink = "" data-orig-file = "https://www.thetruthaboutcars.com/wp-content/uploads/2017/09/20170909_111749-e1505073706450.jpg" data-orig-size = "2576,1932" data-comments-opening = "1" data-image-meta = "{" opening ":" 2.2 "," credit ":" "," camera ":" SAMSUNG – SM-J320A "," caption ":" "," created_timestamp ":" 1504955869 "," copyright ":" "," focal_length ":" 3.3 "," iso ":" 50 "," shutter_speed ":" 0.00065231572080887 "," title ":" "," orientation ":" 3 "}" data-image-title = "Workhorse W-15" data-image-description = "

Image © Corey Lewis

"data-medium-file =" https://www.thetruthaboutcars.com/wp-content/uploads/2017/09/20170909_111749-e1505073706450-450×338.jpg "data-large-file =" https: //www.thetruthaboutcars .com / wp-content / uploads / 2017/09 / 20170909_111749-e1505073706450-610×458.jpg "class =" aligncenter wp-image-1589750 large-size "src =" https://www.thetruthaboutcars.com/wp-content /uploads/2017/09/20170909_111749-e1505073706450-610×458.jpg "alt =" Image: A battle horse W-15, by Corey Lewis "width =" 610 "height =" 458 "srcset =" https: // www .thetruthaboutcars. com / wp-content / uploads / 2017/09 / 20170909_111749-e1505073706450-610×458.jpg 610w, https://www.thetruthaboutcars.com/wp-content/uploads/2017/2017/20170909_111749-e15050736464-75×56.jpg https: //www.thetruthaboutcars.com/wp-content/uploads/2017/09/20170909_111749-e1505073706450-450×338.jpg 450w, https://www.thetruthaboutcars.com/wp-content/uploads/2017/09/20170909_111749 -e1505073706450 -768×576.jpg 768w, https://www.thetruthaboutcars.com/wp-content/uploads/2017/09/20170909_111749-e150 5073706450-120×90.jpg 120w "sizes =" (maximum width: 610 pixels) 100vw, 610 pixels "/>

Yesterday's news that General Motors is negotiating for the sale of its Lordstown assembly plant to a subsidiary of Workhorse Group in Cincinnati has been met with surprise and no doubt.

For starters, the company finished last year with 98 employees. It's still a nascent start-up, eager to sell a light-weight pick-up alongside its electric walk-in vans, some of which have found a home with UPS. Workhorse is pursuing its goal of winning a larger contract with a next-generation van. Most observers believe that the acquisition of the Lordstown plant by Workhorse depends on the conclusion of this contract.

"We have a long way to go," said Ohio Governor Mike DeWine The vindicator of Youngstown GM's announcement, following a revealing tweet from President Donald Trump. "Cautious is probably the right word."

According to GM, an "affiliated entity" led by Workhorse founder Steve Burns would buy the facility, with the Workhorse group holding a minority stake.

"The first vehicle we would consider building if we bought the Lordstown complex would be a commercial electric van, combining Workhorse technology with Lordstown manufacturing expertise," said Burns.

A commercial van, in this case the Workhorse W-15 Extended Range Truck, is not a multi-storey van. The company hopes to become a laureate in the USPS 'Grumman LLV replacement program with a W88 chassis-based van, offered in a 100-km all-electric version or extended-range model, using a three-cylinder BMW engine as generator . This is the same configuration used by the W-15.

The competition for this contract is not lacking.

<img data-attachment-id = "1589746" data-permalink = "" data-orig-file = "https://www.thetruthaboutcars.com/wp-content/uploads/2017/09/20170909_111653-e1505073678494.jpg" data-orig-size = "2576,1932" data-comments-opening = "1" data-image-meta = "{" opening ":" 2.2 "," credit ":" "," camera ":" SAMSUNG – SM-J320A "," caption ":" "," created_timestamp ":" 1504955812 "," copyright ":" "," focal_length ":" 3.3 "," iso ":" 50 "," shutter_speed ":" 0.0006872852233677 "," title ":" "," orientation ":" 3 "}" data-image-title = "Workhorse W-15" data-image-description = "

Image © Corey Lewis

"data-medium-file =" https://www.thetruthaboutcars.com/wp-content/uploads/2017/09/20170909_111653-e1505073678494-450×338.jpg "data-large-file =" https: //www.thetruthaboutcars .com / wp-content / uploads / 2017/09 / 20170909_111653-e1505073678494-610×458.jpg "class =" aligncenter size-large wp-image-1589746 "src =" https://www.thetruthaboutcars.com/wp-content / uploads 2017/09 / 20170909_111653-e1505073678494-610×458.jpg "alt =" Image: W-15 Battle Horse, by Corey Lewis "width =" 610 "height =" 458 "srcset =" https: //www.thetruthaboutcars . com / wp-content / uploads / 2017/09 / 20170909_111653-e1505073678494-610×458.jpg 610w, https://www.thetruthaboutcars.com/wp-content/uploads/2017/2017/20170909_111653-e150507457844554546 https: // www. thetruthaboutcars.com/wp-content/uploads/2017/09/20170909_111653-e1505073678494-450×338.jpg 450w, https://www.thetruthaboutcars.com/wp-content/uploads 2017 / 20170909_111653 -e1505073678494-768×576.jpg 768w, https : //www.thetruthaboutcars.com/wp-content/uploads/2017/09/20170909_111653-e150 5073678494-120×90.jpg 120w "sizes =" (maximum width: 610 pixels) 100vw, 610 pixels "/>

"The development of the collection will take advantage of the R & D performed for the USPS price, which will greatly accelerate the production process," said the company in a presentation in 2017.

The Lordstown assembly has already organized three teams of workers building the Chevrolet Cruze, before declining sales will reduce its workforce. The plant footprint is 6.2 million square feet, far exceeding the 300,000 square feet of Workhorse's current production space. Only a huge contract, with a lot of capital, could turn Lordstown into a battleground factory.

"It's not yet the day of celebration for Mahoning Valley, Lordstown or the workers," DeWine said. "For this to really work, it will be important for Workhorse to get the contract with the postal service."

Workhorse has never been profitable; The company's finances for 2018 show sales of $ 763,173, expenditures of $ 21.8 million and funds available of $ 1.5 million (per year). NBC subsidiary company WKYC). In January, Workhorse received $ 35 million in funding from Marathon Asset Management, an initiative Looking for alpha called "actually another last-ditch effort to avoid bankruptcy."

Dave Green, president of UAW Local 1112, who represented the workers at Lordstown, did not know what was happening, saying, "It's too early to say how it will affect our lives. members."

The nature – and financial resources – of the Workhorse affiliated entity is not known to date. Despite this, as well as the still undecided nature of the US postal service contract, the Workhorse (WKHS) stock rose 214% yesterday, closing at $ 2.65.

[Image: Corey Lewis/TTAC]

Related