GM Sells Lordstown Plant That Became Flash Point for Trump, UAW -- Update

By Mike Colias 

General Motors Co.'s closed Lordstown, Ohio, assembly plant -- which became a flash point for President Trump and unionized workers angry over the company's factory closures -- has a new owner.

GM has sold the factory to a new electric-truck maker, Lordstown Motors Corp., for an undisclosed amount, the startup company said Thursday. Lordstown Motors said it is seeking investment to begin production in late 2020 of electric pickup trucks, aimed at business and government customers. Its first model will be called the Endurance.

GM said the sale to Lordstown Motors could help the area become a hub for electric-vehicle manufacturing. GM has said it also will invest in a nearby factory that will make battery cells for electric vehicles.

GM disclosed in May it was in talks to sell the plant to the newly formed manufacturer, saying the move would preserve jobs as the auto industry transitions from traditional gas-powered vehicles to those running on electricity. That news was lauded by President Trump, who had urged GM to keep the factory open and salvage jobs in the politically pivotal state.

During recent contract negotiations, officials with the United Auto Workers -- the union representing workers at the factory -- unsuccessfully pressed GM to earmark a different model to the Lordstown plant to keep it open. Instead, the new four-year contract ratified by GM factory workers last month after a 40-day strike paved the way for GM to close or sell the plant.

The electric-truck startup plans to use union labor but has yet to have contract discussions with the UAW, said Steve Burns, Lordstown Motors' chief executive.

The Lordstown factory will employ roughly 400 workers to start, Mr. Burns added. He expects pay to be competitive with wages workers had been making under GM ownership, which ranged from about $17 an hour to $30 an hour.

(END) Dow Jones Newswires

November 07, 2019 16:31 ET (21:31 GMT)

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