General Motors confirmed Wednesday that it is in discussions to sell its Lordstown, Ohio, plant to electric vehicle maker Workhorse and a newly-formed corporate entity, confirming an earlier pair of tweets by President Trump.
The big picture: The Lordstown plant's planned closure by GM is a key 2020 issue for Trump, who wants to shore up his place with blue-collar voters in a key swing state. But while the news might seem good for the plant's workers on its face, Workhorse is no GM — it has a market cap of just $55 million and 98 full-time employees, compared to the 1,600 workers who were employed by GM at Lordstown.
- The announcement says that the newly-formed corporate entity would acquire the Lordstown plant and be headed by Workhorse founder Steve Burns. It added, "Workhorse would hold a minority interest in the new entity."
- GM also said it will invest $700 million in three locations in Ohio, creating 450 new jobs in the process.
The full text of Trump's Twitter announcement:
What they're saying: In a statement, GM CEO Mary Barra said, "We remain committed to growing manufacturing jobs in the U.S., including in Ohio, and we see this development as a potential win-win for everyone. Workhorse has innovative technologies that could help preserve Lordstown’s more than 50-year tradition of vehicle assembly work."
- "The U.S. economy and our core business are strong, so we can expand our commitment to U.S. manufacturing and Ohio and create job opportunities for our employees."
- "We also expect to bring more jobs to the U.S. over time in support of the expected provisions of the USMCA."
Go deeper: GM's Lordstown closure set to be a key 2020 issue for Trump
