![]() Burns has since sold his entire stake in Lordstown, according to a June regulatory filing.Īs Lordstown wrestled during 20 with investigations by regulators and the U.S. Lordstown's finance chief at the time also resigned. In 2021, its chief executive and founder, Stephen Burns, resigned after the automaker acknowledged it had overstated pre-orders for its electric trucks. Like several others, including truck maker Nikola (NKLA.O), Lordstown, which went public in 2020, has struggled to live up to the high expectations of early investors. GM agreed to sell the plant to a newly-formed entity called Lordstown Motors founded by the former top executive at an electric truck maker called Workhorse Group. President Donald Trump and other Ohio political leaders put pressure on GM CEO Mary Barra to reverse the decision, or find a buyer. The Lordstown factory in Northeast Ohio was formerly a GM (GM.N) small-car factory that GM decided to close in 2018. Lordstown CEO Edward Hightower told Reuters the Endurance business could prove attractive to another automaker looking for a fast entry into the EV market at a time the Biden administration's policies are attempting to move away from gasoline-powered cars. It does not have an initial offer in hand, known in bankruptcy parlance as a stalking-horse bidder, which sets a minimum price other suitors can top in an auction. ![]() Lordstown filed for bankruptcy with plans to seek a buyer. Should Lordstown fail to find a rescuer willing to re-start full production of the Endurance, the Ohio factory could be a draw for overseas automakers looking for a quick way to build vehicles in the United States. Lordstown paused production of the Endurance earlier this year and since April has resumed building the trucks at a low rate after resolving quality issues with suppliers. ![]() Lordstown sold the plant to Foxconn in 2022. The automaker's main product is the Endurance electric pickup truck, which is built at a former General Motors small-car factory in Lordstown for commercial customers such as local governments. Lordstown accused Foxconn in that regulatory filing of engaging in a "pattern of bad faith" that caused "material and irreparable harm" to the company. Lordstown, a startup launched in 2018, said in a regulatory filing earlier this month that it had planned to sue Foxconn after receiving a letter from the company that led Lordstown to believe Foxconn was unlikely to make its additional expected investment. The lawsuit portrays Foxconn as consistently shifting goal posts in its collaboration with Lordstown on the automaker's future vehicles, which included failing to meet funding commitments and refusing to engage with the company on initiatives Foxconn allegedly directed and purported to support. ![]()
0 Comments
Leave a Reply. |
Details
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |