Lordstown Motors plan not realistic
As optimistic and enthusiastic headlines abound concerning the viability of Lordstown Motors, I hate to be the pessimist in the room, but it seems to me the exuberance is completely unfounded.
One need not spend tens of thousands of dollars on consultants to come to the conclusion that the prospect of its success is extremely unlikely. Instead, a half hour of time invested on the internet reveals the huge hurdles this startup company faces.
The fact is, this company has no product and virtually no money in the bank to develop one. The competition is fierce and well funded and almost ready to go. Lordstown Motors has a drawing of a truck. Their development timeline is completely unrealistic. They have big ideas and promises, but they don’t really have their own skin in the game. Public incentives are needed to help finance their dreams. Their CEO was removed as CEO of Workhorse Group because that company was heading toward bankruptcy.
When General Motors “sold” the plant, they made it clear they weren’t going to be investing in Lordstown Motors. GM has its own electric pickup in development. Why would GM practically give away the plant to a prospective competitor?
I think GM probably just wanted to ditch the liability and bad press over its closing of the plant. By unloading it to folks making promises about bringing lots of jobs back, GM escapes that scrutiny. The company seems to be saying “Adios, Mahoning Valley. You’ll be just fine,” as it runs for the exits.
While politicians should try to attract employers to the area, they are also responsible for using our tax dollars wisely. I’m concerned that the actual motive behind this deal may have been the cheap acquisition of land and equipment, for eventual profitable sale.
Remember how things worked out at WCI?