Ohio-based Lordstown Motors has received approval from the U.S. Bankruptcy Court to sell its remaining manufacturing assets to a company owned by its founder and former CEO Stephen Burns for roughly $10 million.
LAS Capital, owned by Stephen Burns, will reportedly receive Lordstown's intellectual property, business data, and any machinery used for manufacturing. However, Taiwan’s Foxconn will retain the factory itself after a financial dispute which ultimately left Lordstown filing for bankruptcy last June.
With the Lordstown Motors Corp. bankruptcy now official, everyone is trying to figure out what exactly happened. This includes CEO Ed Hightower, who is now claiming that the executive leadership at Foxtron — a subsidiary of Foxconn Technology Group focused on electric vehicles — refused to meet with him in 2022.
Frankly, it seems like everyone is playing the blame game right now. Lordstown is keen to place some heat on the Taiwanese partner it sold its factory to and Foxconn isn’t interested in taking the fall. But let’s see what can be gleaned from Hightower’s interview.
Carvana is in trouble.
The used-car company, known for its large "car vending machines" that can be seen along busy suburban freeways, is seeing its stock tank in the wake of a Bloomberg report that at least some of its creditors are making a pact that binds them to work together in negotiations with it.
The Pontiac Grand Prix was a long-term staple in Pontiac’s lineup, a Driving Excitement alternative to the Buick and Chevrolet cars with which it shared its various platforms. Though it faded from its initial personal luxury prominence, Grand Prix had one final V8 hurrah at the end of its life. It was a sort of return to form after many years with a maximum of six cylinders. Let’s check out some GXP goodness.
German wheel manufacturer BBS is, once again, confronting bankruptcy. However, it’s likely to come out on the other side intact if its own history is anything to go by. During its quest for global dominance, BBS found itself out of money in 2007. Decades of expansion crippled the company’s finances, but not before it became one of the most recognizable wheel brands on the tarmac. In fact, few vehicles from the the tail end of the 20th century suffer from having a set wrapped in rubber.
What would Subaru even be without its World Rally Blue paint and gold BBS wheels? How many racing video games bother to launch without the brand having its best styles represented in the customization menu? Who dares claim the BBS RS isn’t the most iconic mesh wheel in the history of tuning culture?
The Securities and Exchange Commission has urged the recently bankrupted Hertz to halt the sale of stock. The rental agency had hoped to raise half a billion on the sale but repeatedly warned that would-be buyers were gambling, as the stock may soon be worthless.
Bizarrely, this hasn’t discouraged investors from glomming onto shares of bankrupt and near-bankrupt companies. Despite the global economy supposedly hurdling into a recession and mass unemployment, Wall Street hasn’t signaled that anything is amiss.
Still, the SEC has grown concerned with the trend and decided to address them with Hertz, according to a recent filing. Trading of Hertz Global Holdings Inc. was halted on Thursday, placing investors in a holding pattern as everyone speculates whether the bankrupt car renter will have to revise its plan to raise cash by selling new shares.
Hertz Global Holdings Inc. has been in discussions with creditors in the hopes of making a deal that addresses its missed debt payments and gives the company further leeway. Rental agencies are struggling, with Hertz in the roughest shape of all. All thanks to a certain virus, business has dried up, and Hertz finds itself sitting on a pile of quickly depreciating cars it cannot afford to replace. The company’s stock also plummeted at the end of February — going from $20.29 per share to today’s $2.86.
The rental agency has until Friday to negotiate an extended forbearance agreement or drop $400 million in lease payments, but news has surfaced that lenders think Hertz declaring bankruptcy may be just as good a solution.
There’s certainly no love lost between former Nissan chairman Carlos Ghosn and the automaker he once helmed. After trashing the company’s sales performance in a Lebanon media conference earlier this month, during which he again accused Nissan of conspiring with Japanese officials to orchestrate his arrest, we know hear he gives the automaker maybe two or three years before it hits rock bottom.
“ Rock bottom” is where former CEO Hiroto Saikawa said his company was at last May. Maybe there’s still a ways to go.
As April 20th dawns without a wage deal with its workforce, General Motors’ troubled Korean division could be well down the road to bankruptcy.
GM Korea, which recently announced the closure of an assembly plant amid a continued loss of sales and money, needed to reach a deal with its 16,000 workers by today’s date in order to gain assistance from the South Korean government. The division builds the Chevrolet Spark, Trax, and Buick Encore for U.S. customers. Since revealing its r estructuring plan back in February, GM Korea failed to gain much-needed wage concessions from its aggressive labor union.
Without this, bankruptcy might be the only option, the automaker claims.
General Motors workers in South Korea forced their way into company executive offices on Thursday, destroying furniture in response to news that the automaker’s local unit told employees there will be no bonuses due its ongoing cash crisis.
Based on video evidence, the incident itself was weirdly organized, with just a hint of underlying fury. As tables were carefully moved out of the office, perhaps to be destroyed elsewhere, union members tossed chairs, glasses, and the CEO’s various knickknack to the ground. There was also some light smashing of a cabinet and the trampling of a blazer, which was later carefully dusted off and removed from the room by an employee. The whole affair was closer to the hiring of a budget moving crew than a full-blown riot.
South Korea’s powerful labor unions have the ability to make vehicle assembly a non-starter, and the country’s workers have been known to strike like it’s going out of style. Just ask Hyundai about that.
As it seeks to bring its operations in the country back from the brink, General Motors would prefer to see its workers’ union bend to its will, agree to the concessions demanded of it, and generally get out of the way. This isn’t happening, so GM’s now playing hardball.
Agree to our cost-cutting plan, the automaker says, or GM Korea declares bankruptcy.
Faraday Future has issued a strange response to the criticism surrounding its most recent high-profile “staffing adjustment.” Last week, news broke that the startup automaker’s chief financial officer, Stefan Krause, left the firm in October — forcing media outlets to play catch up. When the information made its way to The Truth About Cars, we dug back into Faraday’s current condition and reported that things were still a mess at its California headquarters.
Unwilling to let the automotive media monopolize the conversation, Faraday released a response letter. In it, the company accuses Krause of being fired for “dereliction of duty” and said it would be taking legal action against him. It’s the first time the startup had updated its media page in months and is a peculiar reaction to a staffing change that, at the time, seemed like the least of Faraday’s worries.
It’s been a while since we’ve discussed the ongoing plight of Faraday Future. While most of this year — and all of the last — was riddled with missteps from the automotive startup, we’ve taken a break from reporting on it. That wasn’t because its situation had improved, however. Oh boy, is that ever not the case.
Earlier this month, details emerged that the business was preparing to file for bankruptcy, followed immediately by the firm denying the validity of those claims. Then, news broke that Faraday’s chief financial officer, Stefan Krause, had quietly resigned in October — despite having been hired specifically to solve the company’s financial troubles back in March.
This got us wondering as to exactly how much more can go wrong before Faraday Future finally throws in the towel.
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- Master Baiter ____________ doesn't want electric _____________.
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- Oberkanone BMW, Ford, Honda, and Volkswagen have different fleet emissions rules than Stellantis and other manufacturers. This is unfair trade practice and California is the leader of this criminal conspiracy. Unified emissions regulations are needed. Disjointed patchwork of CARB and Federal emissions states results in harm to our economy inefficient manufacturing. CARB emissions regulations violate the Commerce Clause by engaging in extraterritorial regulation.