Remember that plan for GM’s closed Ohio factory to reopen under an electric truck maker? Yeah, that’s maybe not something to bet the farm on.
Last year, GM announced they would close multiple plants in North America, including the Lordstown, Ohio facility. After the last Chevy Cruze rolled off the line, the plant closed and put thousands of employees out of work.
But there was a ray of hope. Private talks were being held between GM and electric pickup startup Workhorse Group to keep the plant open but have it make electric trucks instead. The deal would create a new venture with Workhorse owning the facility and would keep at least a few hundred workers to convert the facility into making Workhorse products.
That number would climb to 3,000 employees over several years if the company were to be awarded the USPS contract to make the next generation of postal service van. While the news wasn't exactly met with beaming smiles from Lordstown workers hoping to keep their GM salaries and pension, it was better than being out of a job.
Talks were said to be in "roughly preliminary discussions" last May and are still ongoing. However, Workhorse second-quarter earnings don't exactly instill confidence than the company will remain a going concern.
According to a report from Jalopnik (quoting figures from Bloomberg), Workhorse's sales totaled just $6,000 for the entire quarter. That works out to about $70 per day, which is about as much money as you can expect to make sitting on the streets of New York with a dirt-smeared face and an upturned hat.
Workhorse's stock price fell 35% to a total market valuation of under $200 million. The only good point in Workhorse's report was that they have $70 million in backorders for their vehicles, but those will mostly be built at their factory in Union City, Indiana.
Discussions continue, with GM issuing a statement that they’re confident the factory will still be sold. The question remains if Workhorse will still be around to employ anyone.