Basic Motors Co. loaned the customer of its half-century-old meeting plant in Ohio $40 million to assist the cash-strapped startup roll out an electrical pickup truck.
The transaction to assist Lordstown Motors Corp. and its debut mannequin, referred to as Endurance, is basically a mortgage, stated Jim Cain, a GM spokesman, by e mail. He declined to offer the phrases of the mortgage.
The financing GM offered covers Lordstown Motors’s buy of the previous GM complicated in Lordstown, and a few preliminary startup prices, the Enterprise Journal reported Monday, Dec. 9, citing authorized paperwork filed late final week. The publication, primarily based in close by Youngstown, stated the manufacturing unit and adjoining land offered for $20 million earlier this month, citing data from the Trumbull County auditor.
GM has the choice to repurchase the plant within the subsequent six months, in addition to the choice to lease 500,000 sq. ft of property and one other 400,000 sq. ft of land, the Enterprise Journal reported, citing a memorandum filed with the recorder’s workplace.