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Workhorse Electric Truck Company talks to General Motors about the purchase of its assembly plant in Lordstown, Ohio.
President Donald Trump apparently warned an official announcement regarding the deal Wednesday after a conversation with GM CEO Mary Barra. Both companies are still in the negotiation phase, according to GM.
The automaker broke in after Trump celebrated the deal on Twitter, claiming that "discussions" with Workhorse were underway and that Workhorse's founder, Steve Burns, would buy the plant after final agreement ".
Markets reacted strongly to this news, raising the Workhorse stock by nearly 215% to $ 2.65 per share. The stock climbed even higher after the trading session, where it landed at $ 3.47.
Read more: It appears that Trump announced GM's plan to sell its Ohio car plant to an electric truck business – before GM could
"We remain committed to creating jobs in the manufacturing sector in the United States, including Ohio," Barra said in a statement. "We believe that this evolution is a winning solution for everyone".
"Workhorse has innovative technologies that could help preserve the tradition of over 50 years of Lordstown vehicle assembly work."
This would be good news for the Midwestern manufacturing sector, which is heavily impacted by auto-plant closures, which are partly due to changing demand for certain types of vehicles.
Trump also interpreted the pending deal between GM and Workhorse as a victory for his political program and a potential boost for his re-election campaign in 2020 in Ohio. He won the generally purple state in 2016, with 51.3% of the vote, after the victory of President Barack Obama in 2012.
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