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Musk had dropped a hint in an interview with the CBS TV program “60 Minutes” on Dec. 9 that he might be interested in buying one of the three North American vehicle assembly plans GM has said have no work allocated after next year. On Monday, Kasich tweeted at Musk, “Hey @ElonMusk. Call me. There are no better workers than Ohio workers black onyx cufflinks square uk online. And Lordstown is ready for you.” Musk responded on Thursday, “Thanks, will consider next year.”. GM, however, owns the factory, and in a statement following the Musk tweet, GM spokesman Patrick Morrissey said: “GM has said the plant is unallocated and the next steps are a matter of UAW-GM negotiations.”..
GM and the United Auto Workers will negotiate new master contracts for the automaker’s U.S. operations next year, with a resolution likely in the fall black onyx cufflinks square uk online. The Lordstown assembly plant, which builds GM’s slow-selling Chevrolet Cruze compact sedan, is one of five plants in North America GM has marked for possible closure. Trump has put pressure on GM to find a new vehicle for the Lordstown plant, threatening to kill a $7,500 federal tax credit program for electric vehicles that is beneficial to GM. That program has also benefited Tesla, and both automakers have lobbied Congress for months to lift the cap on electric vehicles eligible for the full $7,500 tax credit from the present level of 200,000 vehicles..
Analysts on Thursday tried to sort out the pros and cons of a deal that has not happened. For Trump, the stakes are clear. Ohio is a battleground state the president won in 2016 and needs to win again to be re-elected in 2020. Trump said during a July 2017 visit to nearby Youngstown that jobs were coming back to the region. “Don’t move,” he told local residents. “Don’t sell your house.” black onyx cufflinks square uk online. For GM, selling Lordstown to Tesla could help “reduce costs, improve sentiment and de-escalate political pressure,” Morgan Stanley analyst Adam Jonas said in a research note on Thursday..
GM, however, plans to compete more aggressively with Tesla by launching a fleet of electric vehicles over the next several years. Enabling Tesla’s expansion could undermine its own electric-vehicle strategy. Tesla’s sole assembly plant in Fremont, California, used to be a GM factory. The electric vehicle maker acquired the plant in 2010 for $42 million after GM and then-partner Toyota Motor Corp (7203.T) abandoned production there black onyx cufflinks square uk online. Tesla has begun building a plant in China. Ohio’s incoming governor, Mike DeWine, plans to meet with senior GM executives next month at the Detroit auto show to discuss the fate of the Lordstown plant, but GM officials have told Congress it is extremely unlikely the company will add a new vehicle there..
If GM did reverse course and decide to retool the plant, it could take at least three years to prepare it for production, including potentially replacing the paint shop, GM told lawmakers. The United Auto Workers reiterated on Thursday that the union “will leave no stone unturned contractually, legally and through bargaining to keep the GM plant open.” black onyx cufflinks square uk online. Musk has had a tense relationship with the UAW, which is seeking to represent workers at Tesla’s Fremont plant. The union in May filed a complaint accusing Musk of illegally threatening to take away benefits from workers who join the union..