GM’s Lordstown Sale Comes With Loan, Option to Repurchase: Report

As part of GM’s sale of the Lordstown Assembly plant to the new Lordstown Motors, GM is offering them a loan of $40 million. That comes with the right for the General to buy back the plant, says a new report.

The Ohio plant, shuttered over low demand for Chevrolet’s Cruze sedan, is being purchased by upstart Lordstown Motors, a company that plans to build electric vehicles at the new site. It was sold in early November, after being shuttered in March. While GM just announced that a new battery cell facility would be built in Lordstown, it will be a new site. And most of the original 1,600 GM workers have been relocated to other sites in other states.

Part of the sale is an open mortgage between the two, says the Business Journal Daily of Youngstown. It comes with an option for GM to repurchase the plant and all transferred assets, as well as the option to lease 900,000 square feet of land, the report says. Though they come with a tight timeline, the GM lease option expires in April and the repurchase ends in May.

Lordstown Motors CEO Steve Burns has said the company is working to raise more than $300 million, and is hoping to have production of its electric pickup online by the end of 2020.

Business Journal Daily