General Motors (GM) Sells Ohio Plant To Lordstown Motors
Zacks Investment Research | Nov 07, 2019 09:04PM ET
General Motors (NYSE:GM) recently completed the sale of its shuttered Ohio factory to electric truck start-up Lordstown Motors Corp. The sale of the complex, which was opened in 1966, was carried out for an undisclosed amount.
The factory’s fate was decided when the United Auto Workers ("UAW") union failed to convince General Motors to retain it under the latest labor contract, which was approved in October 2019.
The Ohio factory sale is expected to turn the Lordstown area into a centre for electric-vehicle manufacturing. Meanwhile, General Motors will invest in a nearby factory that will make battery cells for electric vehicles. This is likely to create about 1,000 UAW-represented jobs in Lordstown.
Meanwhile, Lordstown Motors is expected to initiate the production of Endurance, its first electric pickup, in 2020. Endurance will deliver four in-wheel drive, with one motor for each wheel and is likely to hire 400 UAW workers with wage of roughly $31 an hour. It is anticipated to lower repair costs for fleet operators by possessing fewer moving parts than existing pickups. It also will have outlets that will enable users to run power tools off the battery.
Owing to the General Motors-UAW strike, the auto giant revised its 2019 earnings view. It now forecasts adjusted earnings per share between $4.50 and $4.80 per share. The company expects adjusted automotive free cash flow within $1 billion.
Zacks Rank & Stocks to Consider
General Motors currently carries a Zacks Rank #3 (Hold).
A few better-ranked stocks in the Auto-Tires-Trucks sector are Spartan Motors, Inc. (NASDAQ:SPAR) , SPX Corporation (NYSE:SPXC) and BRP Inc. (NASDAQ:DOOO) , each carrying a Zacks Rank #2 (Buy) currently. You can see Original post
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