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Possible Buyer for GM Plant Faces Stiff Hurdles
Workhorse Group, the tiny electric-vehicle maker in talks to buy General Motors Co.’s assembly plant in Lordstown, Ohio, may not be financially viable, the Financial Times reports.
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Workhorse Group, the tiny electric-vehicle maker in talks to buy General Motors Co.’s assembly plant in Lordstown, Ohio, may not be financially viable, the Financial Times reports.
Yesterday GM confirmed discussions with Workhorse, describing the prospect of a sale as a potential win for all parties. The Cincinnati-based EV maker employs about 100 people who make electric delivery trucks and buses.
Workhorse reported a loss in 2018 of $37 million on sales of just $763,000, and its cash reserve shrank by nearly two-thirds to $1.5 million, FT says. The newspaper adds that Workhorse hasn’t turned a quarterly profit in at least 10 years.
Last year’s financial performance prompted Workhorse’s auditors, Grant Thornton, to caution about the manufacturer’s ability to operate as a going concern. FT says New York City-based Marathon Asset Management LP, Workhorse’s largest shareholder, participated in a $35 million funding round earlier this year to keep the company operating.
Workhorse proposes to find financial backers to help it buy the 6.2 million-sq-ft Lordstown plant, which eliminated 1,500 jobs when it halted production in March.
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