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(Bloomberg) – The electric truck builder in talks to reopen a closed car factory in Ohio that US President Donald Trump has defended, reported a dismal result in terms of results, that vehicle deliveries stagnated.
Sales of Workhorse Group Inc. were $ 6,000 in the three months ended June, down from $ 171,000 the previous year. The Cincinnati-based company announced in May that it was in talks with General Motors Co. to create a new subsidiary that will buy the factory of the Chevrolet Cruze, a factory closed by the automaker, to Lordstown, Ohio.
Workhorse shares fell by nearly 35%, their largest intraday four-year decline to $ 2.58. Chief Executive Officer Duane Hughes said during a call for results that the company had $ 70 million worth of orders pending for its electric vehicles, although its Union City plant, in the United States, is still underway. Indiana, manages much of this work. The size and experienced workforce of the Lordstown plant could strengthen the company's offer for a potential $ 6.3 billion contract with the US Postal Service to build 180,000 electric mail trucks .
"We view the plant as a potential game changer for the postal service contract," said Hughes.
Trump prevented the announcement of a discussion between GM and Workhorse in May for more than an hour, saying in two words that the development was "great news for Ohio!" The President of the United Auto Workers Local told Bloomberg that he was unaware of the discussions. the union issued a statement calling on GM to assign a new product to the plant and continue to operate it.
At a rally in Youngstown in July 2017, Trump told his supporters "do not move, do not sell your house" because his administration would bring back jobs and fill the factories in the area. But in November of last year, GM announced its intention to stop production, costing Lordstown the last of the 4,500 direct jobs created by the factory just a few years ago.
(Updates with CEO comments beginning in the third paragraph.)
To contact the reporters on this story: Kyle Lahucik in Southfield at [email protected], David Welch in Southfield at [email protected]
To contact the editors in charge of this story: Craig Trudell at [email protected], Chester Dawson
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