The electric truckmaker in talks to buy General Motors' idled factory in Lordstown, Ohio, that President Donald Trump has championed reported a dismal quarter of results as vehicle shipments ground to a halt.
Workhorse Group Inc. had just $6,000 in sales during the three months ended in June, down from about $171,000 a year earlier. The Cincinnati-based company announced in May it was in discussions with GM to form a new affiliate that will buy the automaker’s idled Chevrolet Cruze car plant.
Workhorse shares closed down 20.5 percent to $3.17 Tuesday.
Trump preempted GM and Workhorse’s announcement of their talks in May by more than an hour, tweeting in all caps that the development was “great news for Ohio!” The UAW’s local president told Bloomberg News he was unaware of the discussions, and the union issued a statement calling for GM to assign a new product to the plant and keep operating it.
During a July 2017 rally in nearby Youngstown, Trump told supporters “don’t move, don’t sell your house,” because his administration would bring jobs back and fill up factories. But by November of last year, GM announced plans to stop production at Lordstown, costing the area about 4,500 direct jobs.
GM in March idled Lordstown as part of a massive restructuring to reduce North American capacity.
