GM lending $40M to startup firm shopping for closed Ohio plant, Auto Information, DFL
Ohio: Basic Motors has agreed to mortgage $40 million to a newly shaped firm that wishes to make electrical pickup vehicles at an enormous Ohio meeting plant GM shut down earlier this 12 months.
The settlement between the 2 firms additionally would enable GM to purchase again the plant up till subsequent Could, paperwork filed final week present. The quantity accessible can be greater than sufficient to cowl the $20 million price ticket for the plant.
Lordstown Motors Corp. introduced a month in the past that it had purchased the the once-bustling manufacturing facility close to Youngstown that made the Chevrolet Cruz up till final March.
The brand new firm desires to start making electrical vehicles by late 2020, but it surely additionally mentioned that it nonetheless wants extra traders earlier than manufacturing can start.
GM’s choice to finish manufacturing in Lordstown, the place it employed 4,500 two years in the past, got here into the political highlight after President Donald Trump criticized the plan final 12 months and pushed GM executives to both reopen or promote the plant, At one level, he threatened to chop off all federal subsidies to the automaker.
GM spokesman Jim Cain mentioned the corporate desires to assist Lordstown Motors persist with its launch schedule and that the corporate doesn’t count on it could purchase the plant again, neither is it an investor in Lordstown Motors.
“It is in everybody’s greatest curiosity in seeing this succeed,” he mentioned.
The mortgage settlement, first reported by the The Enterprise Journal in Youngstown, additionally would give GM the prospect to lease land subsequent to the Lordstown plant.
GM introduced final week that it has shaped a three way partnership with Korea’s LG Chem to construct an electrical car battery cell manufacturing facility at undisclosed location close to Lordstown.
The brand new battery plant will create greater than 1,100 jobs, however the precise location hasn’t been disclosed.
Lordstown Motors, in the meantime, plans to rent 400 manufacturing employees subsequent 12 months in order that it might start restricted manufacturing of its electrical vehicles.