Drudge Retort: The Other Side of the News
Friday, November 08, 2019

General Motors has sold its factory in Lordstown, Ohio, to a company that says it will make electric pickup trucks with union labor at wages comparable to those of the Detroit automakers.

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Steve Burns, the founder of Lordstown Motors, said the company would give preference in hiring to the plant's former G.M. workers.

"We think it is appropriate that it is union," Mr. Burns said in an interview. "Our goal is to hire those folks first who have experience and are still in Lordstown."

Lordstown Motors expects to begin hiring workers next fall and start production by the end of 2020, Mr. Burns said. Workers will probably earn the top U.A.W. wage of about $31 an hour, he added.

"We will be paying the same as the Big Three are paying," Mr. Burns said.

If they're successful, watch GM offer to buy them out in a few years down the road.

#1 | Posted by tonyroma at 2019-11-07 07:48 PM | Reply

Well if I ever buy an electric truck these guys will be at the top of my list.

#2 | Posted by qcp at 2019-11-08 09:54 AM | Reply

It's Workhorse Group. They've been around for 12 years now.

Market Summary > Workhorse Group Inc
NASDAQ: WKHS
2.97 USD -0.16 (5.11%)

They put themselves out there as a company selling electric delivery vehicles to Fedex, UPS, etc, but they've never gotten a product to market. The stock went down on this announcement.

#3 | Posted by sitzkrieg at 2019-11-08 09:59 AM | Reply

Good price for a stock. If they can actually bring a vehicle to market, there's some money to be made here.

#4 | Posted by boaz at 2019-11-08 10:37 AM | Reply

If they can actually bring a vehicle to market, there's some money to be made here.

Well I got a name for it... why not call it the "Tucker Torpedo"?

#5 | Posted by Pegasus at 2019-11-08 10:42 AM | Reply

"It's Workhorse Group"

Not exactly, Lordstown Motors has signed an IP licensing agreement with Workhorse.

#6 | Posted by qcp at 2019-11-08 10:57 AM | Reply

I would not invest in them. Tesla is going to dominate the market.

The problem is that Tesla is not your typical company. They could increase their prices significantly and be making a VERY healthy profit. But, their goal is not to make money. Their goal is to advance clean energy (in relation to vehicles, get more electric ones on the road).

Which means that they are not leaving any room for other companies to make a profit (while that company builds up). So, little guys like this just can't compete with Tesla before they run out of money. Hell, even the established carmakers can't compete with Tesla.

The key to staying at the top of your industry is to disrupt yourself. But, that is almost impossible for public companies to do. Because a "disruption" almost always leads to less profits. If your business is catering to shareholders, then intentionally causing your business to have less profits will cause you to be removed, quick.

But, as long as Musk is in charge, I expect Tesla will be able to get away with not catering to shareholders. So they will be able to continue to disrupt themselves, and will dominate the industry.

#7 | Posted by gtbritishskull at 2019-11-08 11:01 AM | Reply | Newsworthy 1

osb is dead but is gm alive?

#8 | Posted by Sniper at 2019-11-08 11:15 AM | Reply

#7 partially true, but I think it is mostly that Musk knows economy of scale wins and while he could be a small profitable niche company for a while, the company that scales EV to the masses will dominate.

The big 3 or some Chinese company could produce a EV commuter car that would massively out sell Tesla.

#9 | Posted by bored at 2019-11-08 11:19 AM | Reply

The big 3 or some Chinese company could produce a EV commuter car that would massively out sell Tesla.

#9 | POSTED BY BORED

You say that, but where is it. Effectively no one is competing with Tesla in the EV space at this point. The big automakers have cars, but they are not selling at anywhere near the rate of Teslas. And from what I understand, the ones that the established automakers are selling they are losing money on. The market is starting to winnow out the weaker players and that is starting to look a lot like EVERYONE but Tesla.

And, the EV market is going mainstream. Tesla is getting close to being the highest volume sedan in the US. Not just EV, but ALL sedans. And they are decimating the luxury car sedan market. And they are planning on coming out with a crossover next year, and a pickup truck sometime after.

Every time a new EV is talked about, it is called a "Tesla killer". But no "Tesla killer" has emerged from it. Look at Porsche. They have made a car that is almost equivalent to what Tesla makes, but it is still not clearly better, and it is about twice the price.

Tesla is 5 years ahead of every other EV automaker, and they are not going to slow down (as normal companies do when they lead a market, so they can start raking in profits).

Also, their BIG moneymaker in the future will be self-driving. Look at the biggest most profitable companies out there (Facebook, Amazon, Google). They got that way by using data effectively. And they STAY that way by HAVING access to all of that data. Google even created a free phone operating system SOLELY so that they could ensure their continued access to data. Tesla is putting tons of sensors on their cars and gathering tons of data. And I predict they will use that data to perfect self-driving. No one else has anywhere CLOSE to that amount of data to leverage for self-driving cars.

Tesla has had a rough time breaking into the market so far, because it is a market with high barriers to entry. But that means there is less risk to them of a startup like this being able to enter the market and compete with Tesla. And it looks like the stars are aligning for Tesla to be ready to take off and dominate the market very soon (due to the market transitioning from being primarily ICE to primarily EV).

#10 | Posted by gtbritishskull at 2019-11-08 11:49 AM | Reply

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1800s Union Work = to stop from being oppressed so they can work humanely
2000s Union Work = to stop from being forced to work so they can be lazy

#11 | Posted by humtake at 2019-11-08 11:50 AM | Reply

"2000s Union Work = to stop from being forced to work so they can be lazy"

What flavor kool-aid did you swallow?

#12 | Posted by Danforth at 2019-11-08 12:03 PM | Reply

2000s Union Work = to stop from being forced to work so they can be lazy"

What flavor kool-aid did you swallow?

#12 | POSTED BY DANFORTH

Idiot flavored.

#13 | Posted by aborted_monson at 2019-11-08 01:06 PM | Reply | Newsworthy 1

This is terrible news! Unions are the worst!

Nullifidian
MAGA!

#14 | Posted by mOntecOre at 2019-11-08 01:30 PM | Reply

What flavor kool-aid did you swallow?

Putin Pomegranate

#15 | Posted by JOE at 2019-11-08 01:36 PM | Reply

Union = 4 guys leaning on shovels watching 1 guy use a shovel.

#16 | Posted by bogey1355 at 2019-11-08 02:08 PM | Reply | Newsworthy 1

"Union = 4 guys leaning on shovels watching 1 guy use a shovel.
#16 | POSTED BY BOGEY1355"

You're just bummed that there is no Int'l Union of Fry Cooks.

#17 | Posted by mOntecOre at 2019-11-08 02:17 PM | Reply

But, their goal is not to make money. Their goal is to advance clean energy.

#7 | POSTED BY GTBRITISHSKULL AT 2019-11-08 11:01 AM | REPLY

Totally, that's why Musk promised to only sell Teslas at an extreme markup, and Tesla was going to be a Full Self Driving robotaxi company. Every car a money printing, appreciating asset.

Q3 conference call saw that walked back massively. The reality of Level 5 autonomy is setting in. That's right after putting deferred revenue from FSD on the books after the smart summon release disaster.

Tesla's board and investors are there to make money, except for the crony positions that are just along for the ride no matter what happens. The investor lawsuit exposing the fraud behind the Solar City acquisition, what the board discussed, and the fraud fed to investors, is staggering and in the public depositions.

#18 | Posted by sitzkrieg at 2019-11-08 02:22 PM | Reply

Speaking of the Solar City acquisition...

New York State spent $958.6 million to build Tesla Inc.'s solar panel factory in South Buffalo and buy a big chunk of the equipment inside. Now, auditors are saying the building and all that equipment is worth just under $75 million " or just 8% of what the state put into the RiverBend factory.

At least it was a big of a loss as Foxconn subsidies.

#19 | Posted by sitzkrieg at 2019-11-09 09:16 AM | Reply

Wasn't.

#20 | Posted by sitzkrieg at 2019-11-09 09:16 AM | Reply

You're just bummed that there is no Int'l Union of Fry Cooks.

#17 | POSTED BY MONTECORE AT 2019-11-08 02:17 PM | REPLY

Fast Food worker unions form affiliated with the Industrial Workers of the World.

#21 | Posted by sitzkrieg at 2019-11-09 09:53 AM | Reply

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