Electric truck manufacturer Workhorse has secured $25 million in new funding from investors.
The Cincinnati-based company has encountered some financial difficulties in recent times and it recently emerged that it was in talks with General Motors to buy the car manufacturer’s idled factory in Ohio.
In a statement, Workhorse revealed that its latest round of funds came from an unnamed group of institutional investors and isn’t intended to go towards the purchase of the plant.
Workhorse’s former chief executive Steve Burns told The New York Times that the truck maker plans on taking a minority stake in a company he has formed to buy the GM factory. However, buying and restarting production at the site will require a much larger investment: $300 million, to be more precise.
“This funding provides Workhorse with sufficient capital to fully deliver on our existing backlog and will enable us to make significant strides in our strategic vision of being a leader in the electric last mile delivery space,” current Workhorse chief executive Duane Hughes said. “We now have all necessary pieces in place to bridge Workhorse into full-scale N-GEN production and are looking forward to commencing the manufacturing process, in earnest, during the fourth quarter of this year.”
Workhorse unveiled a prototype of its W-15 electric pickup truck a couple of years ago, but has yet to commence production. It is believed they will initially focus on building battery-powered lightweight vans for customers including UPS, DHL, and others before rolling out the W-15.