Mexican Media Brands
Fortunes Vanish for Would-Be Buyer of GM Plant
Workhorse Group—the tiny company that wants to buy a shuttered General Motors assembly plant in Lordstown, Ohio—reported second-quarter sales revenue of just $6,000.
#economics
Share
Workhorse Group—the tiny electric-vehicle maker that hopes to buy a shuttered General Motors assembly plant in Lordstown, Ohio—reported sales revenue of just $6,000 in the second quarter, Bloomberg News reports.
Workhorse, which employs about 200 people, hasn’t turned a profit in at least 10 years. Last year the company lost $37 million on sales of $763,000, and its cash reserve shrank nearly two-thirds to $1.5 million. The company has a market value of roughly $200 million, Bloomberg says.
Workhorse founder Steve Burns is trying to raise $300 million to set up a new entity, Lordstown Motors Corp., that would acquire the factory and make an all-electric vehicle based on Workhorse’s W-15 truck.
The new company also would back Workhorse’s bid to win a $6 billion-plus contract to supply delivery trucks for the U.S. Postal Service. CEO Duane Hughes tells analysts that gaining control of the 6.2 million-sq-ft GM plant could help Workhorse secure the deal.
Hughes says the company has a $70 million backlog of orders for its EVs, which would be produced primarily at a Workhorse facility in Union City, Indiana.
RELATED CONTENT
-
On Military Trucks, Euro Car Sales, Mazda Drops and More
Did you know Mack is making military dump trucks from commercial vehicles or that Ford tied with Daimler in Euro vehicle sales or the Mazda6 is soon to be a thing of the past or Alexa can be more readily integrated or about Honda’s new EV strategy? All that and more are found here.
-
On Fuel Cells, Battery Enclosures, and Lucid Air
A skateboard for fuel cells, building a better battery enclosure, what ADAS does, a big engine for boats, the curious case of lean production, what drivers think, and why Lucid is remarkable
-
On The Jeep Grand Cherokee, 2022 Nissan Pathfinder, and More
An inside look at the Detroit Assembly Complex-Mack; a innovative approach to waste-free, two-tone painting; why a forging press is like an F1 car; and other automotive developments.
