GM Helps Lordstown Motors for Launching Electric Truck with $40M Loan

GM Helps Lordstown Motors for Launching Electric Truck with $40M Loan

Business

It is now a well-known fact that General Motors Co. has sold the Lordstown complex plant for $20 million. Interestingly, GM Motors will loan $ 40M so that Lordstown Motors Corp. can launch their first product. Lordstown Motors Corp. is just a startup, and its plan of purchasing the GM Lordstown Plant became successful in 2019. The event took place in early November. Details of the sale were not provided much by both the companies. The only thing known is that Lordstown Motors will make its headquarters at the same plant and have plans of building an electric pickup truck in the same place. It is all set to hop on the lucrative electric vehicle sector.

The whole deal is in the form of the open-end mortgage agreement, where there is mention of $40 million for purchase of the complex and of the launch of the new electric truck, namely the Endurance. The amount of the loan might shoot up to $50 million- if needed. There are plans for retooling and updating the plant to commence production. The whole process of transfer was delayed due to a strike of 40 days by the United Auto Workers Union against GM. Lordstown Motors Corp. aims to launch the truck in 2020, and the $40-$50 million loans from GM will help in progressing with the project to a great extent. The terms of the sale or the final loan amount have not been given out by GM Motors.

Lordstown Motors Corp.’s main aim is to build electric trucks solely for commercial customers. Companies that require fleet vehicles can benefit from these trucks-for sure. Utility companies and municipalities need special mention. The first production will be that of full-size pickup followed by mid-size pickup and gradually with an industrial utility truck. By late 2020, production is expected to begin- as per the company updates. A man-force of 400 workers will also be hired for the plant. More funds are expected to be raised for the plant.