Expectations for Youngstown’s reinvention diminish as electric truck companies scatter | Automotive industry

ILordstown Motors Promotion The future of Youngstown, Ohio, a once prosperous steel and manufacturing city, struggled to reinvent itself during the post-industrial era.

After General Motors unplugged its nearby Lordstown plant, the company and its Endurance all-electric pickup truck were considered the savior of Youngstown. “It’s booming right now. It’s definitely booming,” Donald Trump said in September. Unveiling ceremony Of the White House Endurance Truck.

These hopes are fading as Lordstown Motors faces financial difficulties and locals are once again worried about the region’s financial future.

“It’s a very sad moment in Youngstown’s history. Every five years, hope is just above the horizon, and it seems that someone closes it and disappears,” said Bob Hagan. Expression Youngstown area for nearly 30 years in Ohio General Assembly as Parliamentary Representative and State Senator.

General Motors Announcement We plan to close five plants in North America in November 2018. This includes the Lordstown factory, which employs 1,600 workers and has been in operation for 52 years. The number of employees dropped sharply in the early 1990s. Over 10,000 workers Adopted at the factory.

In March 2019, the last Chevy Cruze was rolled off the assembly line as a factory Stopped Hundreds of workers were forced to retire, relocate to another GM factory elsewhere in the United States, or find another job.

The area was steadily closed, and the closure was devastating to the residents of Mahoning Valley, Ohio. Decline From outsourcing and factory closures over the last few decades in the automotive, manufacturing and steel industries.

General Motors sold out The plant was offered to Lordstown Motors for $ 20 million in 2019 and lent $ 40 million to the company.

However, hopes for a bright future of electricity soon diminished. Since the purchase of the plant, Lordstown Motors has experienced financial and development challenges. The company recently visited the facility with reporters, analysts and other visitors. confusion Conflicting outlook statements, CEO and CFO resignations, and statements to securities regulators that the company did not have enough funds to start production.

Hagan said these hardships are just the latest setbacks for many hard-knocked areas. Over the last few decades, steel mills and manufacturing plants have been closed in the face of broken promises. He fears that Lordstown Motors may prove another company that came to the area with high expectations and high promises just to disappoint the community.

“They are rearranging the Titanic chairs,” he said.

Securities and Exchange Commission (SEC) open A survey of statements made by Lordstown Motors on the order following a report from short-selling Hindenberg Research, which Rosetown Motors accused of misrepresenting the funding order. 5 Lordstown Motors executives sold out In February 2021, there were over $ 8 million in shares prior to the company’s financial reporting results and before the company’s financial issues were announced.

“Talking to the majority of us doesn’t surprise us with all the problems at Lordstown Motors,” said the former chairman of the United Auto Workers, 1112, which represents GM Lordstown’s employees. One Timothy O’Hara says. He worked in the factory for 41 years before he retired.

“Lordstown Motors was in a volatile situation from the beginning. I hope it succeeds for the economy of Mahoning Valley, but I’m not holding my breath.”

Lordstown Motors Factory is now Approximately 600 employees, Production is scheduled to start at the end of September. But it faces some big hurdles. In a statement filed with the SEC, the company said its success was “to complete the development of electric vehicles, obtain regulatory approval, start commercial-scale production and start selling such vehicles. It depends on “ability”.Before it happens projection We will run out of funds by May next year.

The elected officials Bet big on success Of Lordstown Motors in the area. December, Ohio Tax Credit Office Approved The company’s state tax credit is estimated to save $ 20 million in payroll tax based on its promise to create 1,570 full-time jobs.Jobs Ohio, Ohio’s private economic development agency Pledge A $ 4.5 million grant to Lordstown Motors.In April of last year, the company Over $ 1 Million Through the Federal Pandemic Clone to hold 42 jobs.

But Hagan believes the money may not be enough, and once again, it will be the Youngstown people who will pay the price.

“Taxes are being used to lure people into our community. We are more vigilant about how organizations are taking money and have officials elected to ensure they deliver. I have to hire, “he said.

Expectations for Youngstown’s reinvention diminish as electric truck companies scatter | Automotive industry

Source link Expectations for Youngstown’s reinvention diminish as electric truck companies scatter | Automotive industry

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