View photosMoreA worker prepares to install a door on the new Chevrolet Cruze car as it moves along the assembly line at the General Motors Cruze assembly plant in Lordstown, Ohio July 22, 2011. Reuters - General Motors Co plans to lay off 2,000 employees at two U.S. auto plants in early 2017, the automaker said on Wednesday.GM said it will furlough the employees when it cuts the third shift at its Lordstown, Ohio and Lansing, Michigan plants in mid-January.The Lordstown plant builds the compact Chevrolet Cruze, whose U.S. sales through October were down 20 percent.The Lansing Grand River plant builds the Cadillac ATS and CTS, whose sales were down 17 percent through October.GM also said it will invest $211 million at the Lansing plant for an unspecified "new product program."
Reuters - The election of Republican Donald Trump as U.S. president put new pressure on automakers and other manufacturers that depend on open trade with Mexico.Shares fell for U.S. automakers and suppliers, which rely heavily on production in Mexico to feed their U.S. manufacturing and sales operations.Electric luxury car maker Tesla Motors Inc shed 3.3 percent.Tesla could be hurt if a Trump administration cuts federal support for electric cars.Canada's Magna International Inc , whose Mexican operations account for about 14 percent of sales, were down 3.7 percent.But those moves would force U.S. consumers to pay higher prices for vehicles, said Charles Chesbrough, senior economist at the Detroit-based Original Equipment Suppliers Association trade group.
This coming week, I'll be driving to Detroit to cover the North American International Auto Show.I did the same thing last year, and once again my route will take me through Lordstown, Ohio — right past the factory where General Motors' Chevy division builds the Cruze, a compact sedan that's among the most successful vehicle GM has ever sold.You can't miss the Cruze pride at Lordstown: There's a gigantic banner of the car on the side of the factory.Since 2010, nearly every Cruze sold in the US or Canada — that's well over a million cars since 2010 — has rolled off the Lordstown assembly line.With sales that could cross 4 million globally in the next year or so, the Cruze is an amazing story for GM, a carmaker that had effectively abandoned the small-car market in the US before the financial crisis.President-elect Donald Trump has made the Cruze and GM his latest Twitter target, threatening GM with a border tax because the automaker thought it might be a good idea to bring a few Mexican-made hatchback versions of the Cruze into the US to see if adding a trim level in the second half of 2016 would enhance the Cruze story and give dealers a vehicle with more SUV-like functionality in a booming SUV market.Trump has no understanding of the modern, global auto industry, and yet he isn't afraid to take to Twitter to show off his ignorance.The fact is that the Cruze is built on a global manufacturing platform and sold worldwide in numerous markets under GM's different regional brands.Interestingly, the auto industry doesn't seem to care what Trump tweets — it quickly figured out that he's using Twitter to bolster his Save American Manufacturing Jobs pledge.Eventually, the markets will also figure this out and stop knocking a percentage point or two off automakers' stock prices every time Trump turns to 140-character brinkmanship.US car companies build cars all over the place, and at time they bring cars into markets from outside those markets.The car I'll be driving to Detroit is a Buick made in China.GM didn't immediately respond to my request for comment, but in a statement to CNBC the auto giant said that they imported and sold only a tiny number of Cruze hatches from Mexico.All Chevrolet Cruze sedans sold in the U.S. are built by GM's assembly plant in Lordstown, Ohio.
President Donald Trump considers himself a dealmaker of the highest order, but in the short period since he won the presidential election and took office, he's already been out-dealt by the major US automakers.The CEOs of General Motors, Ford, and Fiat Chrysler Automobiles journeyed to the White House on Tuesday to meet with Trump and process his demand that the carmakers build factories and hire workers.But the automakers probably aren't going to build any additional factories, and they're unlikely to go on a hiring spree.The US market for new-vehicle sales has been booming for years, but after a record year, with 17.55 million cars and trucks sold, it appears to be leveling off ahead of a standard issue cyclical downturn.In that environment, the automakers don't want to add any additional manufacturing capacity.Yet Trump wants headlines, and the automakers are more than happy to give them to him: an investment in an existing factory here, adding workers to existing shifts there.GM just laid off 1,200 workers at its plant in Lordstown, Ohio — smack in the middle of Trump country — because it doesn't need three shifts building an increasingly unpopular small sedan, the Chevy Cruze.Meanwhile, Trump is giving the Big Three — and for that matter, the Japanese, German, and South Korean car companies that also manufacture in the US — the moon and the stars.Give the carmakers what they wantBy saying that environmental regulations have gotten out of hand in the Tuesday meeting, he reassured the automakers that they'll be getting a break on more stringent emissions and fuel-economy regulations — music to the automakers' ears as they continue to sell a lot of profitable pickups and SUVs and would like to back away from smaller, more fuel-efficient vehicles.Ford's leadership has been vocal on this front, saying repeatedly that a review process between the automakers and the government over higher Corporate Average Fuel Economy CAFE standards was "short-circuited" when the EPA locked in the rules last year.Business Insider heard a unified message from the company on this score at the recent Detroit auto show.What about a border tax on vehicles and parts imported from Mexico for sale in the US?The industry is already assuming that this is a done deal.But it isn't about to accept a one-tax-fits-all approach, and the expanded federal bureaucracy needed to administer such a tax will quickly become a political liability for Trump, offsetting his pledge to cut regulations by 75% and putting him on the wrong side of Republican orthodoxy.As far as corporate tax cuts go, the industry is already assuming that it, too, is a done deal.And what many people in the car business are calling "pro-growth" policies from the Trump administration could extend the current sales boom for another 12 to 18 months, enabling the automakers to further bulk up their balance sheets ahead of a downturn.It's entirely possible the carmakers' stocks will also move higher, after being stuck in the doldrums since the sales boom began.
Now, GM is ramping up its belt-tightening measures with cuts to factory and white-collar workers, plant closures in North America and the elimination of several car models as it tries to transform into a nimble company focused on high-margin SUV, crossovers and trucks and investments in future products like electric and autonomous vehicles.The actions, which are meant to safeguard the automaker from an expected downturn in the U.S. market, will increase GM’s annual free cash flow by about $6 billion, including cost reductions of $4.5 billion and lower capital expenditure annual run rate of almost $1.5 billion by 2020.Ford took similar cost-cutting measures earlier this year.GM said it will cut its salaried workforce in North America by 15% —and its executives by 25% — as well as no longer allocate products to three assembly and two propulsion plants, including the Lordstown Assembly in Ohio, Detroit-Hamtramck Assembly in Michigan and Oshawa Assembly in Canada beginning in 2019.GM will stop allocating production at propulsion plants in White Marsh, Maryland, and Warren, Michigan after December 2019.That means factory workers at those plants will be laid off as well.
General Motors announced an aggressive cost-saving plan Monday that will see it idle several manufacturing plants and lay off about 15 percent of its salaried staff."We recognize the need to stay in front of changing market conditions and customer preferences to position our company for long-term success," GM CEO Mary Barra said in a statement.GM said it would not allocate new products to several production plants in 2019: Oshawa Assembly in Canada, Detroit-Hamtramck Assembly in Michigan and Lordstown Assembly in Ohio.Those plants primarily build cars, and GM said the changes are "in response to market-related volume declines in cars" as customers switch to SUVs and trucks.Oshawa builds the Cadillac XTS and Chevrolet Impala.Detroit-Hamtramck builds the Chevrolet Volt, Chevrolet Impala, Buick LaCrosse and Cadillac CT6.
GM announced on Monday that it will idle three assembly plants and cut more than 14,000 jobs in a major strategy shift.In addition, GM confirmed that the passenger car six models made at the soon-to-be-closed factories will go out of production.These models include the Chevrolet Cruze, Chevrolet Impala, Chevrolet Volt, Cadillac CT6, Cadillac XTS, and Buick LaCrosse.The announcement also signals a shift away from the traditional sedan which has been losing sales to crossovers and SUVs for much of the past decade.To deallocate production simply means that GM won't assign any models to be produced at these facilities beyond 2019.According to Matthew DeBord, Business Insider senior transportation correspondent, GM can't officially shut down these plants under its current UAW union contract, which is set to be renegotiated in 2019.
GM announced Friday it will invest $300 million into a Michigan factory to produce a new Chevrolet electric vehicle, reversing a decision to build the EV outside of the United States.The announcement comes on the heels of recent job cuts and plant closures by GM, moves that have complicated bargaining with union workers over a new four-year contract and has sparked intense criticism from President Donald Trump over a decision to end production at a factory in Lordstown, Ohio.The automaker’s investment into its Orion Township, Michigan assembly plant — the same facility that already produces the all-electric Chevy Bolt — will add 400 new jobs.Orion Assembly, which employs about 880 hourly and 130 salaried employees, also produces the Chevrolet Sonic and the Cruise AV test vehicles.GM isn’t revealing details about what the new electric vehicle will look like, cost, or any of its performance metrics.Additional product information and timing for the new Chevrolet EV will be released closer to production.
When General Motors in November announced a Thanos snap's worth of vehicle cuts, plant idles and layoffs, there were a lot of unanswered questions.This week, GM seeks to provide at least some closure with news of a potential sale and the addition of jobs in an area that was affected by The Decimation.General Motors announced on Wednesday that it is in talks to sell its Lordstown Complex in Ohio.GM is currently discussing the idea with Workhorse Group, a company that has supplied green vehicles to UPS and hopes to offer even more electrified work vehicles in the future.But the complex wouldn't be sold directly to Workhorse, per se -- instead, Workhorse's founder is leading an independent entity that would purchase the facility, with Workhorse commanding a minority interest in said business entity.So, what'll be built there?
In November, General Motors announced a culling of vehicle models and facilities.GM is in talks to sell its Lordstown Complex in Ohio to Workhorse Group, which is interested in using the factory to build electric trucks.The factory was “unallocated,” meaning GM planned to close it down rather than replace the Cruze with another model.Workhorse, or rather a consortium led by the company’s founder, is now working to buy the factory.That would preserve local jobs and help GM save face.While the company recently announced new investments and added jobs at other Ohio facilities, it has been widely criticized for idling so many workers as it closes factories and trims its vehicle lineup.
Workhorse, the electric-truck company negotiating a deal to buy an Ohio assembly plant from General Motors, got a sizable boost in its stock price on Wednesday after President Donald Trump sent a tweet about the deal.Shares of Workhorse Group Incorporated finished the day at $2.65, nearly 215% above the previous day's close at $0.84 per share.Workhorse shares have floated around $1 or less for most of 2019.Trump apparently preempted an official announcement about the deal between GM and Workhorse on Wednesday, forcing GM to correct the president's remarks.Visit Business Insider's homepage for more stories.The electric-truck company Workhorse is talking to General Motors about buying its assembly plant in Lordstown, Ohio.
the Factory in Ohio to be closed down, and now try to GM to get the little Workhorse Group to move in.When General Motors announced that they would lay down their factory for the assembly in Lordstown, Ohio, they came at odds with Donald Trump.Now it turns out that GM is trying to sell jättefabriken, and the idea is that the Ohio-based Workhorse Group will move its production of electrified vehicles to Lordstown.Buyers, however, is a new company, in which Workhorse stands as a minority shareholder.To the Detroit News said a spokesman for GM, it is still too early to determine whether the brand will go in as an investor in the new company.Last year, the company showed up W-15, an electrical pickup with a small gasoline engine acting range extender.
Workhorse Group, the electric vehicle company that grabbed headlines last month over a proposed deal to buy General Motors’ Lordstown, Ohio factory, has raised $25 million from a group of unnamed investors.The money will not go toward the factory.An annual dividend will be paid out in shares of Workhorse stock.The Cincinnati-based company is small, with fewer than 100 employees.Workhorse has struggled financially at various points since its founding in 1998.As of March 30, 2019, the company had cash, cash equivalents and short-term investments of $2.8 million, compared to $1.5 million as of December 31, 2018.
GM's 46,000 UAW-represented workers could take to the picket lines.President Donald Trump, who won Ohio in 2016, has been agitating for GM to sell or reopen that plant.The 2007 strike against GM lasted just a few days; it's uncertain how long this new action will hold up.Visit Business Insider's homepage for more stories.The current GM contract with the UAW, under negotiation all summer long, lapsed with no extension at midnight on Saturday; pro forma extensions were agreed to with Ford and Fiat Chrysler Automobiles, both of whom were awaiting the outcome of the GM deal, which would form a template for a new four-year agreement between the union and the Detroit Big Three.Read more: 5 reasons why Elon Musk should rescue a GM factory in Ohio
General Motors has reached an agreement with the United Auto Workers to end a month-long strike, and the automaker’s idling manufacturing facility in Lordstown, Ohio will officially close as part of the deal.But a planned sale of the facility to a new electric truck startup called Lordstown Motors, which is partially owned by struggling electric vehicle maker Workhorse Group, is still on, The Verge has learned.“It’s still our intention to sell the plant to Lordstown Motors,” Jim Cain, senior manager for sales and executive communications, tells The Verge.News of the sale to Workhorse was first announced by President Trump in May, who touted it as “GREAT NEWS FOR OHIO!” The president had previously berated GM for wanting to close the Lordstown plant, which was used to build the Chevy Cruze sedan, even going so far as to threaten that his administration would treat the automaker poorly.The potential sale was initially seen as a boon for Workhorse, which was in some serious financial trouble at the time of the announcement.Despite having struck deals selling electric vans to Ryder and UPS, Workhorse has never been profitable.
Following a Thursday morning meeting in Detroit, the United Auto Workers union's GM Council agreed to turn a proposed labor contract into a tentative agreement.However, after details of the tentative agreement were made public, it includes three large pills for workers to swallow.Joining Lordstown will be the Baltimore and Warren Transmission plants.The UAW contract summary said "it is with sadness" that the negotiations didn't bear better news for the three plants, but the union negotiators were pleased with gains in other job security pillars.One of those pillars is the fact the Detroit-Hamtramck production plant will remain open and receive a new product allocation.GM executives have also spoken of the automaker's intention to build an electric pickup.
After 40 days, UAW-GM union workers are heading back to work as members voted to ratify the tentative agreement put in place last Thursday.The agreement puts an end to a costly strike for both UAW workers and General Motors, which has become one of the longest walk-outs in GM history.The ratification process requires a simple majority for the labor contract to move past the tentative stage."We are all so incredibly proud of UAW-GM members who captured the hearts and minds of a nation," UAW Vice President and Director of the UAW-GM Department, Terry Dittes, said."Their sacrifice and courageous stand addressed the two-tier wages structure and permanent temporary worker classification that has plagued working class Americans."Although workers have survived on $275 per week strike pay, GM will pay out $11,000 ratification sums to each full-time worker for ratifying the agreement.
Lucid Motors CEO Peter Rawlinson worked for Tesla CEO Elon Musk from 2009 to 2012. Rawlinson said the biggest lesson he learned from Musk is the importance of relentless optimism. "Sometimes you have to put all your chips in," Rawlinson said. Are you a current or former Lucid employee? Do you have an opinion about what it's like to work there? Contact this reporter at [email protected], on Signal at 646-768-4712, or via his encrypted email address [email protected] Visit Business Insider's homepage for more stories. Peter Rawlinson worked for Tesla CEO Elon Musk from 2009-2012 as he led the development of the electric-car maker's groundbreaking Model S sedan. Now the chief executive of the electric-vehicle startup Lucid Motors, Rawlinson learned from Musk the importance of relentless optimism. "I really believe that success can beget success," Rawlinson said in an interview with Business Insider. "It can be a self-fulfilling prophecy if you're really committed and you're all in, and everyone at Lucid knows I am. And that's the leadership I hope I provide." If you focus too much on what might go wrong, it can decrease your odds of achieving your goals, he added. "Sometimes you have to put all your chips in," he said. Musk, Rawlinson said, demonstrated his commitment to success "on an hour-by-hour basis." Rawlinson has taken that attitude to Lucid, which he joined in 2013 (he became the company's CEO in 2019). His confidence in the company and its debut vehicle, the Air luxury sedan, is driven by Lucid's in-house engineering and design efforts. According to the company, the Air will be able to drive over 400 miles between charges and accelerate from 0-60 mph in under 2.5 seconds. Those specs would make the Air competitive with the Model S, which, depending on the trim, has a maximum range of 402 miles and a 2.3-second 0-60 mph time. "We're creating a car which is going to be the best car in the world," Rawlinson said. "People are going to want it." Lucid will unveil the production version of the Air in September before beginning production next year. The vehicle's price will start "well north" of $100,000, Rawlinson said. Are you a current or former Lucid employee? Do you have an opinion about what it's like to work there? Contact this reporter at [email protected], on Signal at 646-768-4712, or via his encrypted email address [email protected] Read more: Electric pickups are on the way, promising everything from bulletproofing to drinking fountains. Here are some of the wildest features to expect from Tesla, Rivian, and others. Tesla is transforming how cars are sold. But 27 insiders say the company's methods mean slashed pay and living in constant fear of getting laid off. Elon Musk predicts Tesla will complete the 'basic functionality' needed for fully autonomous driving this year — 4 years after the company started selling 'full self driving' software Hydrogen vs. electric: Nikola's CEO reveals why businesses should buy the Nikola Two hydrogen-fueled truck instead of the battery-powered Tesla Semi SEE ALSO: A Ford Focus driver wound up with a nearly $1,000 ticket after being clocked at 437 mph by a faulty speed camera Join the conversation about this story » NOW WATCH: Tax Day is now July 15 — this is what it's like to do your own taxes for the very first time
Lordstown Motors said this is what the production interior should look like when the truck hits the streets next year.
Lordstown Motors has unveiled a pre-production version of the Endurance, the automaker's flagship electric pickup truck. The $52,500 pickup truck is expected to be produced and completed by the late summer of 2021, which would make it to the first mass-produced fully electric pickup truck on US roads. Ohio-based Lordstown Motors has plans to produce 20,000 Endurance builds in 2021, and its first production year has already been pre-sold. Visit Business Insider's homepage for more stories. Ohio-based Lordstown Motors has unveiled a pre-production version of its all-electric pickup truck, the $52,500 Endurance.  Endurance's unveiling event — which included speakers like Vice President Mike Pence and US Secretary of Energy Dan Brouillette — was held in the Lordstown Motors factory in Ohio on June 25. This 6.2 million-square-foot factory was previously owned by General Motors for the production of various Chevrolet vehicles. The first Endurance pickups will be produced and completed by late summer of 2021, placing Lordtown Motors' flagship vehicle in the potential position to be the first electric pickup truck on the road as Tesla will begin production of the Cybertruck in late 2021 (with its single-motor rear-wheel-drive variant beginning production in late 2022). The new automaker currently plans to build 20,000 Endurance pickups in 2021. But according to Lordstown Motors' CEO Steve Burns' speech during the unveiling event, its first year of production had already sold out before the unveiling event. The automaker is now planning to increase production in order to meet consumer demands.SEE ALSO: We compared the Tesla Cybertruck, Rivian R1T, and 5 other upcoming electric pickup trucks by 11 different specs. The Cybertruck won nearly half. "[The Endurance's name] has a dual meaning: it goes very far on a charge and it's a very tough truck, and it's built for people who need tough trucks so it can endure," Burns said during his speech. "The name Endurance is also for the people who are building this truck." Lordstown Motors is a part of a long list of several automakers that have announced the production of electric pickup trucks, including Ford, GMC, Bollinger Motors, Nikola Motors, and Rivian. The Endurance will have the best traction and be the safest pickup of any truck currently available on the market, according to Burns' speech. "People have such a loyalty to [the Ford F-150], but we are coming in with essentially a 75 mile-per-gallon pickup truck," Burns said. "And for the folks we sell fleets to, cost is king, and we are the least expensive pickup truck." Its $52,500 price tag makes the Endurance one of the less expensive announced electric pickup trucks so far, which currently ranges from Tesla's $39,990 for the single-motor Cybertruck to Bollinger's $125,000 B2. The Endurance was designed to have only four moving components in its drivetrain. These moving parts can be found in the truck's wheels that each house independent hub-motor systems This decrease in moving parts lowers the truck ownership and maintenance costs, according to its maker. Source: Lordstown Motors Endurance also has an "onboard power export" that supplies energy for items such as power tools. Lordstown Motors' flagship truck will have a range of over 250 miles. It can reach top speeds of 80 miles-per-hour with its 600 horsepower peak. The truck has a towing capacity of 7,500 pounds ... ... and can seat up to five people. The Endurance can be charged 95% in 0.5 to 1.5 hours on a Level 3 DC charger, or in 10 hours on a Level 2 seven-kilowatt charger. Lordstown collaborated with Goodyear Tire on tires for the truck, which also resulted in a deal that saw Goodyear slated to acquire some Endurance trucks. The automaker unveiled renderings of Endurance's interior in mid-July, almost a month after its debut event. Lordstown Motors collaborated with Hydra Design Labs on the interior look and prototype, according to the automaker. The $52,500 Endurance can currently be pre-ordered with a $100 deposit.
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