General Motors has extended the option to repurchase the Lordstown Assembly plant in Ohio after it sold the facility to Lordstown Motor Company late last year.
Lordstown Endurance hub motor
According to Ohio’s Business Journal Daily, the initial agreement between GM and LMC contained an option for GM to repurchase the plant from the company before May 30th, 2020, but public records indicate the two companies agreed to extend the deadline to August 31st, 2020.
GM agreed to give LMC a $40 million mortgage to buy the 6.2 million sq. ft. facility, the Business Journal also reports, with the company agreeing to purchase the sprawling plant for $20 million. It’s not clear why the automaker elected to extend the repurchase option to August. LMC’s progress on getting its first vehicle to market was likely hampered by the COVID-19 pandemic, however, which would make it less clear if the company would be successful in bringing the vehicle to market on time or secure more funding.
“We understand LMC has had productive discussions with both customers and prospective investors, and we continue to support their efforts to begin building the Endurance pick up truck,” GM spokesman Jim Cain told the publication this week. “The amendment to the memorandum of options does nothing more than provide record notice of the extension of some of the contractual rights that GM already has.”
LMC CEO Steve Burns said production of the vehicle, a battery-electric pickup truck for fleet use called the Endurance, will begin at Lordstown Assembly in the first quarter of 2021. The truck is a light-duty, body-on-frame pickup with four hub motors mounted at each wheel, giving it four-wheel-drive. The company says it accelerates from 0-60 mph in around 5.5 seconds and estimates a real-world driving range of 250 miles. Prices will start at $52,500 before government incentives are factored in.
Lordstown Endurance hub motor
The LMC Endurance will mainly be targeted at fleet buyers. This week, the company confirmed that Servpro, which operates 1,800 water cleaning and restoration franchises in the United States, had pre-ordered 1,200 Endurance trucks. LMC said previously that it already had received 1,000 pre-orders the vehicle and expects to get roughly 20,000 more when it makes its official debut online later this summer.
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Comments
Probably a joint- manufacturer deal can be made while Lordstown Motors makes the trucks.
Jeez, another fine disaster from the GM management, selling factories to a competitor and also financing them. In Thailand they sold their modern factory to the Chinese government controlled Great Wall Motors.
it’s cheaper to keep her!!!
Actually selling and financing the sale makes money for GM. If Lordstown goes down the tubes they get the plant back anyways.
I am wondering since GM elected government push the EV program they may use part of 5be very large facility to build their own product.
To be honest unless Lordstown motors gets a big contract from some one for Fleets they may not be around long.
LMC’s partner, Workhorse Trucks could be selected by the USPS to build the next gen mail delivery van. There are only four teams remaining for the $6.3 billion, 180,000 vehicle program. If Workhorse wins they say the vans will be manufactured in Lordstown.
One of the problems Workhorse has to overcome is the higher initial cost of an electric truck. The Lordstown plant will allow them to build the vans as cheaply as possible. The USPS plans to award this contract in 2020, probably before the end of summer, and probably before the election in November.
I know but the words Could be ar3 not a signed contrac.
Also the Postal Service is far from financial stability.
Then follow it up that this is a tech company with little mfg background.
The reality is for every a Tesla there are 100 fIled EV companies. Even then Tesla is living on stock prices only not full product income,
I expect t GM will end up with the property in the future.
GM fights to take every penny from the people that are on the lines doing the work while Mary Barry and the rest of the slugs ‘work’ in the safety of their suites. GM really screwed its workers at Lordstown.
Now they want us to buy their products. Sickening.
Remember when GM outsources the new Blazer to Mexico because Lordstown was only capable of building small cars. Now their building full size trucks there.
Kinda feel like you guys should mention that Tesla well Elon Musk confirmed they have the option to purchase land outside of Austin Texas. Definitely a threat to GM truck sales if the Cybertruck is slated to come out there. GM needs to seriously release the Hummer in some huge event. Spend the money you would have spent on the May event to marketing the Hummer.
The Hummer will be a ver not model for the image crowd as will the Tesla but both will not sell in the normal full size volumes.
If Tesla can somehow convince how much money Fleet Truck owners can save from a truck that will have almost Zero Maintenance, never rust, powerful as hell, and most importantly is priced pretty much the same as a regular four door 1500 from the Big Three, then yes GM, Ford, and Ram will be in trouble.
In my personal opinion Tesla will sell every single one they can produce just as I predicted the minute Tesla showed this vehicle off. If Fleets can get passed the so called polarizing looks, it might actually spell trouble for our Big Three.
The Hummer EV and the upcoming down the road electric F-150 will not come close to competing on price. Not right away at least. It will take them years to produce enough EV’s to bring the cost down to the Level that Tesla has it right now.
Ford, Ram, and GM better pray that Fleet owners don’t want to save money because of Brand Loyalty or simply because they just do not like the styling. This would be a huge benefit for the Big Three as it will buy them some time to catch up on Price parity.
One thing that nobody is discussing about the Cybertruck is that a lot of “Non” Traditional Truck buyers are ordering them and if leaked numbers are to be believed a lot of younger in age compared to Traditional Truck Customers. If the Cybertruck is what the Young will be looking for, then where do the Big Three go in the Future? Just something to think about.
The Future will be so exciting. So many different outcomes can happen. Lets see who the winners and the losers will be going forward. As a GM fan I am very glad that they are going full speed into EV’s just as VW is as well.
I have always said that Tesla has solidified that coveted Apple position in the Auto Market and the race now is between VW and GM to grab that google second spot.
I could only imagine the people of Lordstown and the surrounding area. Would like to see the plant open and operating. Not much caring Who they are working for as long as they’re working?
After so many years of union steel plants and automakers who are up and down they would just like go reliable steady work.
The tough union rep they earned over the years has scare off many MFGs. But to be honest they have mellowed with the reality the unions did not save them.
The area picked up many good high paying jobs with fracking for oil. Right now has been good but if the election goes to Biden those jobs could quickly be lost to regulations.
It is a prime area with great transportation with highway, rail and the Great Lakes. Skilled labor and cheap property and taxes compared to California etc.
Now don’t let many fool you. A good number of jobs were lost at Lordstown but they have been in decline for years. They only were a percentage of what they were. They used to have two full plants on three shifts with cars and a second Van plant. But it’s size hurt the plant as it was the largest in the states.
Today the newer and smaller plants are more efficient.
My hope is GM retro fits the plant for their use as the Truck here is a long shot as this is not a well funded company or even a well established mfg. this could be another Delorean.
To be honest many had hoped for a large shipping hub to move in as a this is an ever growing segment. The work is steady too.
All that un-sprung weight in those wheel hubs is going to make that “truck” ride like it’s driving on railroad ties. No one will want to drive it. At least not in pot holed northern states. I don’t see LMC being in business very long.
As for Tesla and the Cybertruck, it’s just too ugly and impractical to be seriously considered by contractors and fleet operators. As a drag racer, or a steampunk sand rail, for fools with too much money, Musk may sell some. Make an actual profit? Time will tell.
Did GM extend its option again on August 31, 2020?
Gm could have produced another vehicle at lordstown. But they didn’t want to. Labor cost higher than Mexico
Stupid woman.