Lordstown Motors Goes Bust

On Tuesday, Lordstown Motors Corp. (LMC) officially filed for bankruptcy and sued Foxconn. Though the writing was already on the wall for the Ohio-based electric vehicle manufacturer. Lordstown’s share price collapsed in 2021 and the company has suffered numerous production delays. This seems to have encouraged the Hon Hai Technology Group/Foxconn to back out of its strategic partnership.

But it’s not bad news for everybody. Former chief executive of Lordstown Motors, Steve Burns, managed to sell off every share of his stock before the company filed for Chapter 11. You might remember him as the executive who abruptly quit the company without explanation shortly after LMC's stock valuation slammed into the pavement.

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Woosh, the Money's Gone: Garrett Files for Bankruptcy

U.S. auto-parts manufacturer Garrett Motion filed for Chapter 11 bankruptcy over the weekend. The announcement comes as ex-parent Honeywell International decided it could do without turbochargers and spun the company off in 2018. Garrett claims it lost a bunch of money during coronavirus lockdowns, like so many others, and was dumped by Honeywell only to be saddled with financial liabilities related to asbestos-exposure claims.

But Garrett has also said it’s entering into a purchase agreement with the private equity firm KPS Capital Partners LP for roughly $2.1 billion, providing more than a shred of hope things will turn out okay. While other firms can take a whack at buying the turbo supplier, they must be willing to cover its corporate debt by exceeding the existing bid and will likewise be subject to court approval. Garrett thinks it can still come out on top and wrap the sale by the start of 2021 without interrupting production any more than the pandemic already has.

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Hertz Given Approval to Dump 200,000 Vehicles ASAP

While negotiating the terms of its bankruptcy with creditors, Hertz has been informed that it can sell 200,000 would-be rental vehicles to help cover its debts.

According to a filing with the U.S. Securities and Exchange Commission (approved Friday in the U.S. Bankruptcy Court in Wilmington, DE), Hertz will be allowed to “dispose of at least 182,521 lease vehicles” between now and the end of 2020. Proceeds will then be used to pay off $650 million it owes lenders, with most funds going toward principal payments on financed vehicles.

With the pandemic knocking out manufacturing for months, this is likely welcome news for buyers eyeballing the secondhand market. Dealer lots are light on fresh product at present and times are getting tougher for consumers, making used vehicles all the more appetizing. Even though former rentals have a tenancy to be abused, they typically to go for a bit less than something living a more carefree existence — and Hertz will be desperate to offload them quickly.

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  • ToolGuy Ok, the age isn't scary, the mileage isn't scary, but the badge is. But hang on, it has the bigger engine, no turbo, 'new' tires, the headlight doesn't scare me (I was wrong, slightly scary), bulbs and speakers I can do, new window regulator is under a hundred bucks, the transmission issue was scary but seems manageable (if it goes away when warm), AC issue intrigues me, headliner is easy (if what I'm thinking). I'm at $1,800 and will probably regret it but there it is.
  • 28-Cars-Later Artistic design that resonates with people (your styling sucks Honda, so are you holding back on us?)Automated driving and advanced driver assistance systems that ensure safety and peace of mind (no one wants this)New value of EVs as a “space” for people (wouldn't any vehicle fit this definition?)The joy of driving with the feeling of oneness with the vehicle (you should already be doing this)Outstanding electric efficiency and performance (finally something relevant)
  • Dave M. some I think were done right were the Mini, PT Cruiser, Fiat Spyder, and 2nd gen New Beetle. The GTO, HHR, SSR, and Thunderbird were missed opportunities.
  • Gray All good with me. Surprised?
  • The Oracle Stellantis has been battered lately.