General Motors is in talks to sell its idled Lordstown, Ohio, plant after fierce criticism from President Trump and members of Congress over production cuts that eliminated thousands of jobs.
The sale, to a company led by Workhorse Group founder Steve Burns, requires approval from the United Auto Workers under the terms of the union’s most recent contract, Detroit-based GM said in a statement. An electric-truck maker, Workhorse would hold a minority stake in the new firm.
Trump delivered the news first, via a post on Twitter that cited General Motors CEO Mary Barra and praised her decision.
“We see this development as a potential win-win for everyone,” Barra said. “Workhorse has innovative technologies that could help preserve Lordstown’s more than 50-year tradition of vehicle assembly work.”
[Read more: GM renews vow to find jobs for 2,800 workers at idled plants]
….in 3 separate locations, creating another 450 jobs. I have been working nicely with GM to get this done. Thank you to Mary B, your GREAT Governor, and Senator Rob Portman. With all the car companies coming back, and much more, THE USA IS BOOMING!
— Donald J. Trump (@realDonaldTrump) May 8, 2019
GM has repeatedly highlighted its efforts to employ the hourly workers who lost jobs when Barra enacted a plan to save $6 billion by closing five factories including the Lordstown site, after attacks from Trump.
The real estate mogul’s 2016 victory was fueled by his promise to rejuvenate Ohio’s manufacturing economy, and he has been sensitive to shifts in its labor market.
“I have been working nicely with GM to get this done,” said Trump, who repeatedly urged a sale via Twitter and reportedly told Barra that her company was “messing around with the wrong person.”
[Related: Trump says Ohio auto plant needs to reopen, even if GM has to sell it]
GM said separately that a $700 million investment would help expand three Ohio plants — in Toledo, Parma, and Moraine — creating about 450 manufacturing jobs.
“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,” Barra said.
Amid months of fallout from GM’s plant idlings, the company has emphasized its investment of $22 billion in the U.S. since 2009. Barra promised in March to invest an additional $1.8 billion in U.S. factories, one of which will build a vehicle originally slated for overseas production.
That commitment, which includes a $300 million upgrade of an Orion, Mich., plant that will build a new electric Chevrolet, is expected to create 700 more jobs and support 28,000 current positions in six states.
GM is also adding a second shift and 400 jobs at a Bowling Green, Ky., plant that builds the next-generation Corvette. The remodeled sports car, which GM plans to introduce in July, features a mid-engine design in which the power plant is located between the front and rear axles rather than atop the front one, the most common placement.
“While we’ve done much of the foundational work to right-size the business and our portfolio, we know this transformation is far from over,” Barra told investors in late April. “We also understand what’s at stake and, more importantly, the tremendous opportunity that is ahead of us.”
If the Lordstown sale goes through, the plant’s first product would be a commercial electric pickup, “blending Workhorse’s technology with Lordstown’s manufacturing expertise,” said Burns, the founder and former CEO.
