General Motors sells its shares in Lordstown Motors
There’s more bad news for startup automaker Lordstown Motors. The struggling EV company has been through all sorts of controversy over the past year, and sadly, the story doesn’t end well. General Motors recently announced the sale of its
General Motors sold 7.5 million shares at the end of 2021, but has only just been announced, which is not that uncommon. The news, first reported by the Detroit Free Press, comes as Lordstown Motors announced production figures well below forecasts. The company’s CEO was kicked out for falsifying pre-order numbers, and an investigation into its finances showed it will run out of money in the middle of this year.
General Motors sold the former Chevrolet Cruze production plant in Lordstown, OH to the electric carmaker after closing its own operations at the plant in 2018. As part of the deal, GM invested $75 million to Lordstown, split $25 million in cash and the remainder in assistance with the plant, permits and operating costs.
Since then, Lordstown has hit storm after storm and announced last year that it would sell the facility to Foxconn – the company best known for making iPhones. The deal has been valued at $230 million, but the process isn’t complete and there’s no word on progress.