Lawmakers support federal loan for Lordstown Motors

Valley Congressman Tim Ryan (OH-13) led a group of ten Ohio Senators and Representatives in urging the U.S. Department of Energy to approve Lordstown Motor Corps’ (LMC) application for an Advanced Technology Vehicles Manufacturing (ATVM) loan.

Earlier this year, Ryan successfully worked with the House Energy and Water Appropriations Subcommittee Chairwoman Marcy Kaptur to obtain funding for the ATVM loan program so that it would be available to help convert the Lordstown plant to produce electric vehicles.

After General Motors (GM) announced that it would permanently close the Lordstown Assembly Plant, thousands of workers were forced to move, retire or obtain other jobs.

Lordstown Motors announced that it had purchased GM’s assembly plant back in November. 

Now, Lordstown Motors Corp is seeking the ATVM loan to develop the plant for electric vehicle production.

“Lordstown Motors’ proposal to convert the former GM assembly plant into a state-of-the-art electric vehicle manufacturing facility is an excellent example of why Congress created this particular loan program,” said Congressman Ryan. “Not only will this funding jumpstart our local economy now, but it will position Youngstown and the Mahoning Valley as a leader in the economy of the future.”

The Lordstown Assembly Plant estimates it will initially hire as many as 400 workers in 2020 to manufacture electric-powered pickup trucks.

For each automotive manufacturing job, it is estimated that up to eight ancillary or related supplier or support jobs will also be created.

The auto industry constitutes one of the most important market sectors nationwide, historically contributing 3 to 3.5 percent to the overall Gross Domestic Product (GDP). The Electric Vehicles Market (EVM) is expected to exceed more than $151.5 billion by 2024, with approximately seven percent of the 250+ million vehicles (cars and light trucks) expected to be on U.S. roads in 2030.

You can read the full letter below. 

Dear Secretary Brouillette,

We are writing to lend our strong support to Lordstown Motors Corp’s (LMC) application for a loan through the Advanced Technology Vehicles Manufacturing (ATVM) direct loan program.  We believe the ATVM Loan Program plays a crucial role in supporting the nation’s growth of the U.S. auto manufacturing industry and affords companies the necessary capital for large-scale retooling projects like this.  Assistance from the federal government would leverage private sector financing for investment in LMC’s plant to build electric vehicles in Lordstown, Ohio, and grow the region into the epicenter of electric vehicle manufacturing in the Midwest.

Northeast Ohio saw its economy suffer when General Motors announced in October that it was permanently closing its Lordstown Assembly Plant. As a result, thousands of workers were forced to move, retire, or obtain other jobs, dealing a severe blow to the regional economy. Thankfully, Lordstown Motors announced in November that it had purchased the Lordstown Assembly Plant from GM and would initially hire as many as 400 workers in 2020 to manufacture electric-powered pickup trucks. It is estimated that for each automotive manufacturing job creates up to eight ancillary or related supplier or support jobs. As Ohio Senators and Representatives, it is a high priority to support Lordstown Motors’ business so that it will be successful and provide high-paying job opportunities in the region.

As you know, the auto industry is capital-intensive and constitutes one of the most important market sectors nationwide – historically contributing 3 to 3.5 percent to the overall Gross Domestic Product (GDP). The Electric Vehicles Market (EVM) is expected to exceed more than $151.5 billion by 2024 with approximately 7 percent of the 250+ million vehicles (cars and light trucks) expected to be on U.S. roads in 2030.  Needless to say, working to ensure that Ohio is at the forefront of EVM is of great importance to all of us.

We believe that Lordstown Motors’ proposal to convert General Motors’ Lordstown Assembly Plant into a state-of-the-art electric vehicle manufacturing facility is an excellent example of why Congress created the Advanced Technology Vehicles Manufacturing loan program. In our opinion, this project is the perfect fit for the ATVM program, and we urge you to give Lordstown Motors’ application your fullest consideration.

Sincerely,

Sherrod Brown
United States Senate

Rob Portman
United States Senate

Tim Ryan
Member of Congress

Bill Johnson
Member of Congress

David P. Joyce
Member of Congress

Marcia L. Fudge
Member of Congress

Anthony Gonzalez
Member of Congress

Marcy Kaptur
Member of Congress

Brad R. Wenstrup, D.P.M.
Member of Congress

Bob Gibbs
Member of Congress