Lordstown Motors in superior talks for U.S. retooling mortgage for EV truck manufacturing unit, Auto Information, East Auto Information
WASHINGTON: Startup Lordstown Motors Corp stated Wednesday it’s in superior talks with the U.S. Power Division searching for a authorities mortgage from a program to assist pay for the prices of retooling a manufacturing unit to construct electrical vehicles.
Lordstown chief govt Steve Burns in January 2020 informed Reuters the corporate was pursuing a $200 million mortgage from this system for a former Basic Motors manufacturing unit in northeast Ohio it acquired in 2019.
Burns stated the mortgage would assist “us make extra (autos) as soon as we begin” and “pull future autos ahead a bit of bit.” The corporate’s manufacturing plan doesn’t require the federal government mortgage, however Burns stated the mortgage “places issues on steroids.”
Burns declined to reveal the exact mortgage quantity sought. “I believe you must assume when it comes to – this is similar mortgage that Tesla acquired ” Burns stated.
In 2010, Tesla acquired a $465 million mortgage from the Power Division’s Superior Know-how Autos Manufacturing program, which additionally awarded bigger loans to Ford Motor Co and Nissan Motor Co to retool factories, however has not funded any new loans since 2011.
Nissan and Tesla repaid their loans. Ford is scheduled to repay the rest of its mortgage by June 2022.
The Power Division didn’t reply to a request for remark.
A spokesman for Lordstown stated the corporate utilized in Could.
“That is pretty late stage and so they do not go into this stage of diligence except we’re a superb candidate,” Burns stated, saying it might not get finalised earlier than President-elect Joe Biden takes workplace on Jan. 20.
Biden is a powerful advocate of electrical autos.
Burns reiterated Lordstown is on monitor to start constructing electrical pickups in September.
Lordstown plans to pit its Endurance EV pickup in opposition to opponents from different newcomers comparable to Rivian and Nikola, in addition to GM, Ford and Tesla.
Lordstown stated Monday it has acquired greater than 100,000 non-binding manufacturing reservations from business fleets for its EV truck.