11/3/2023 0 Comments Lordstown endurance vs rivianBurns came up with a concept for an electric pickup truck but lacked the resources to produce it. Lordstown Motors was founded in 2018 by Steve Burns, the former chief executive of Workhorse Group, a small producer of commercial vehicles. has built a new battery factory near its former Lordstown car plant that employs about 1,100 people. employed when it halted production of the Chevrolet Cruze at the Ohio factory in 2019.Īlmost all of G.M.’s workers in Lordstown, which is between Cleveland and Pittsburgh, accepted retirement packages or transferred to the company’s other plants. At its peak in 2021, Lordstown Motors employed about 600 people, fewer than half the 1,400 people G.M. Trump never quite lived up to expectations. start-ups are facing, the liquidation value of Lordstown is going to be low,” he said. Other companies that have struggled to start or increase production include Arrival, Canoo, Lucid and Nikola.Īrrival, Canoo, Lordstown, Lucid and Nikola gained stock listings by merging with special purpose acquisition companies, taking advantage of a Wall Street craze that allowed corporate executives and investors to take businesses public without going through the more rigorous and regulated process of selling shares through initial public offerings.Įrik Gordon, a business professor at the University of Michigan who follows the auto industry, said Lordstown’s repeated production delays and quality problems had hurt its credibility with investors and potential customers. Rivian, which is backed by Amazon, has suffered production delays and produced far fewer sport utility vehicles, pickups and delivery vans than it had expected. Lordstown is one of several electric vehicle start-ups that have run into trouble over the last couple of years. Lordstown “has continuously attempted to mislead the public, and has been reluctant to perform the investment agreement between the two parties in accordance with its terms,” Foxconn said. “We will vigorously pursue our litigation claims against Foxconn accordingly,” Lordstown’s chief executive, Edward Hightower, said.įoxconn - whose formal name is Hon Hai Technology Group - said in a statement that it had hoped to negotiate a solution to Lordstown’s financial troubles but that the two sides had failed to reach an agreement. Lordstown said in a statement that it was starting a “a strategic restructuring process” that was likely to involve selling its remaining assets, such as the technology and intellectual property it developed for its Endurance pickup truck. Lordstown said on Tuesday that it had filed a lawsuit asserting that Foxconn failed to honor its agreement to invest more money in the company. Foxconn said Lordstown had breached their investment agreement because its stock had fallen below $1 a share. The Chapter 11 bankruptcy filing, in federal court in Delaware, was prompted by a dispute with a major investor, Foxconn, the contract manufacturer that is based in Taiwan. Trump for preserving manufacturing jobs, the company struggled with a series of development setbacks and frequent management changes, and managed to make and sell only a handful of trucks. Once hailed by former President Donald J. Lordstown Motors, the troubled electric vehicle company that bought a shuttered General Motors factory in Ohio with grand plans to create the Tesla of pickup trucks, filed for bankruptcy protection on Tuesday.
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