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Sunday, December 5, 2021

Lordstown Motors delays Endurance EV pickup after asserting Foxconn deal

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Money-strapped EV startup Lordstown Motors is delaying the launch of its electrical pickup truck, the Endurance, in the future after asserting the sale of its Ohio factory to iPhone assembler Foxconn.

Lordstown Motors mentioned Thursday that it now plans to ship the Endurance within the third quarter of 2022, not the second as beforehand focused, due to provide chain shortages. It announced a third-quarter loss of $96 million and mentioned it can end the yr with simply $150 million to $180 million in money — together with a $100 million fee from Foxconn towards the acquisition of the manufacturing facility. Lordstown Motors can also be nonetheless constructing pre-production variations of the truck on the Ohio manufacturing facility regardless of saying as recently as August that it will be making production-level vehicles in September.

As well as, the startup distanced itself from the in-wheel motor expertise that it has been selling since its inception, because it now plans to attempt to design further autos primarily based on Foxconn’s personal EV platform. Whereas the Endurance will nonetheless use the hub motors, new CEO Daniel Ninivaggi mentioned Thursday that “not each automobile wants hub motors, and we’ll weigh the tradeoffs.”

Within the span of simply two years, Lordstown Motors has gone from a new startup that won the support of the Trump administration, to a public firm that raised a whole lot of thousands and thousands of {dollars} on claims it will launch the primary EV pickup truck, to dealing with allegations of fraud and two government investigations. It has not too long ago turned over its whole management staff (very similar to Workhorse, the EV startup that Lordstown Motors was basically birthed from) and has offered its manufacturing facility to Foxconn to remain alive.

As soon as the sale closes in April 2022, Lordstown Motors will solely occupy 30,000 of the 6.2 million sq. toes accessible on the manufacturing facility it as soon as owned, whereas different electrical automobile startups like Fisker Inc. are available to work with Foxconn on their very own EVs.

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Ninivaggi, who not too long ago completed a seven-year run on the board of Hertz, emphasised on a convention name Thursday that Foxconn is “solely a part of the answer.”

“We understand that our firm isn’t just an appendage to Foxconn,” he mentioned. “We should execute, and execute higher, and ship the Endurance truck.”

He additionally thanked “all of the shareholders who’ve hung in there with us” and acknowledged the startup that beat Lordstown Motors (and everyone else) to market with an electrical pickup truck: Rivian.

“It’s not straightforward; we see the information day-after-day, with $100 billion market cap for Rivian. And we all know we’ve got a protracted option to go, however we really feel like we’ve got a path and a robust companion,” he mentioned.



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