General Motors has given out a loan of $40 million to help with fledgling electric truck maker Lordstown Motors start-up costs after they acquired GM’s old factory with them.
Last month GM had sold its Lordstown Assembly plant which it had been operating since the 60’s to an ambitious electric automaker Lordstown Motors, who shares its namesake with the town. The company might be relatively unknown, but 10% of it is owned by the slightly less obscure Workhorse Group from who Lordstown licenses their electric powertrains from.
Moving along, the deal for the plant was for $20 million but GM had sweetened the deal and has loaned out $40 million to the company with the option of increasing it to $50 million while Lordstown looks for more investors (as GM is not actually an investor in the company).
‘“We structured the sales agreement to help support Lordstown Motors’ launch plans for the Endurance pickup,” GM spokesman Jim Cain said, who added it “allows them to take possession of the plant and to cover some operating expenses while they undertake their capital raise.””
According to the Detroit Free Press, GM “has an option to repurchase the facility and all transferred assets, and holds the option to lease 500,000 square feet of the factory and another 400,000 square feet of land.”
Pretty big moves from a company that is essentially only a year old, but it is being helmed by former Workhorse Founder and CEO, Steve Burns as well as former Tesla Director of Manufacturing, Rich Schmidt. The startup is ambitious planning release an electric pickup named the Endurance by late 2020.
No much is known about the electric truck other than some key benchmarks that Lordstown is aiming for:
- All-electric range up to 250+ miles per charge
- Tighter turning radius
- Greater traction
- Fewest moving parts
- Extended brake life due to re-gen braking
- No oil changes
- No emissions
- Extra-large frunk storage
- High output accessory/tool power
- Lowest total cost of ownership
- Fleet proven technology
- True Four-Wheel Drive in our standard model (starting at $52,500)
- Attractive leasing options available
- Pre-order now and get the auto-braking (crash avoidance) option at no extra charge
You can already lay down a $100 deposit if you feel so inclined.
GM seems to have been busy throwing around some money this week on electric projects as last week it was announced that LG Chem and GM would set up a joint venture to build an electric car battery factory in the Ohio area.