Tag: Lordstown

By on May 12, 2022

Image: GM

Best known for manufacturing small electronic devices for companies around the world, Foxconn will soon be branching out to assemble automobiles in Ohio. On Wednesday, the Taiwanese Hon Hai Precision Industry Co. (traded as Foxconn) closed on a deal with Lordstown Motors to purchase a 6.2 million-square-foot plant that used to belong to General Motors.

The $230 million deal leaves Foxconn with the facility and 400 Lordstown manufacturing employees it’s supposed to use to assemble the delayed Endurance pickup. Though the long-term plan is to use the plant to become a contract manufacturer akin to Magna Steyr, with an emphasis on all-electric vehicles.   (Read More…)

By on March 1, 2022

Lordstown Motors has gone from the savior of Ohio to just another blowhard electric vehicle startup. Last year, it became the focus of investment research firm Hindenburg Research and an incredibly damning report that accused the company of fraudulent behavior. The paper cited thousands of non-binding, no-deposit orders and was proven right a few months later when the startup announced it didn’t actually have enough money to commence commercial production. By June, Lordstown was under investigation and losing top-ranking executive with nothing to show for itself other than a factory it purchased from General Motors at a discount where it installed a pointless solar panel array. The company said it would be selling the plant to Foxconn Technology Group (Hon Hai Technology Group) in October, along with $50 million in stock, with the plan being to make the Taiwanese firm a contract assembler for the Lordstown Endurance pickup.

It’s going to need that money too because GM is severing ties with the startup and has confirmed it offloaded its remaining stock over the holidays. While the Detroit-based automaker only held about $7.5 million worth of shares, it still represented about 5 percent of Lordstown and continued support of a business that looked to be foundering.  (Read More…)

By on October 1, 2021

The troubled Lordstown Motors has announced it will be selling its Ohio production facility to the Taiwanese Hon Hai Precision Industry, better known as Foxconn. But this is not a case of the prospective automaker offloading its assets so it can pay off its debts in full retreat. Instead, Lordstown has asserted this is a necessary partnership that will help guarantee it can still deliver the all-electric Endurance pickup truck.

Terms stipulate that Lordstown Motors will sell the sprawling factory to Foxconn for about $230 million. Two years ago, the site was purchased from General Motors for a very breezy $20 million after the Detroit-based manufacturer decided to abandon the Chevrolet Cruze. Foxconn will also be buying up $50 million worth of common stock and effectively take responsibility for production at Lordstown Assembly. However there is a laundry list of things that need to be done before pickup assembly is even an option.  (Read More…)

By on August 26, 2021

Lordstown Motors has entered into the phase where an EV startup has to tread water now that everyone knows it failed to disclose various production hurdles and shared inaccurate information about the pre-orders it has been bragging about. The only thing offsetting this bad situation is that our misgivings regarding Lordstown could probably be a little worse. Nikola and Faraday Future told some real whoppers, while the Ohio-based company appeared to have at least one toe dipped in the waters of truth. But we can’t exactly call lying a little less than the competition a major triumph.

It remains a bad situation, particularly because Lordstown lost CEO Steve Burns almost immediately after stating the company was “highly dependent” on his leadership in June. However, the firm said it had remedied the situation by appointing Daniel Ninivaggi as the new chief executive on Friday.  (Read More…)

By on June 18, 2021

We’ve got more bad news about Lordstown Motors. Following several volleys of bad mojo ending with the departure of its upper management, the EV startup has informed the Securities and Exchange Commission (SEC) on Thursday that it doesn’t have any binding purchase orders or commitments.

That’s not what the company was saying several months ago. Hell, that wasn’t even what it said earlier this week when President Rich Schmidt told the Automotive Press Association the company had enough orders to support two years of production. Since the ability to sell automobiles is a somewhat relevant factor in an automaker’s long-term success, we’re getting concerned that Lordstown isn’t long for this world.  (Read More…)

By on June 14, 2021

Starting a car brand has to be among the more foolhardy endeavors one can embark upon. The industry is saturated with giant, multinational companies that don’t want competition and a regulatory environment that requires a ludicrous amount of wealth and plenty of time to overcome. Despite this, we’ve seen countless electric vehicle startups attempting to accrete into something profitable over the last few years. But even the winners have found themselves wholly dependent upon government-backed. carbon-credit schemes or blank-check firms designed to guarantee their IPOs are astronomically high — often before they’ve shown a functional prototype.

This makes distinguishing a company with potential from those that are dead on arrival incredibly difficult. Though it’s getting easier to see which side of the fence Lordstown Motors will be occupying after a particularly grim string of months. One of its prototypes spontaneously combusted during testing last March, at roughly the same time Hindenburg Research was accusing it of fraud. More recently, the business lost CEO Steve Burns and confessed that it was in desperate need of money to start production.  (Read More…)

By on March 12, 2021

Hindenburg Research, the firm that outed Nikola for overselling its technology in last year’s scathing report, has selected a new target. The company in its crosshairs this time around is Lordstown Motors. While the investment research firm stopped short of saying the Ohio-based manufacturer committed fraud, it came extremely close. On Friday, Hindenburg alleged that Lordstown is stringing investors along, will be unable to adhere to its existing production targets, and fabricated sales to make the business appear more appetizing.

“Lordstown is an electric vehicle [special purpose acquisition company] with no revenue and no sellable product, which we believe has misled investors on both its demand and production capabilities,” reads the report. “The company has consistently pointed to its book of 100,000 pre-orders as proof of deep demand for its proposed EV truck. Our conversations with former employees, business partners and an extensive document review show that the company’s orders are largely fictitious and used as a prop to raise capital and confer legitimacy.”

(Read More…)

By on January 12, 2021

 

Lordstown Motors

Lordstown Motors announced on Monday that they had exceeded 100,000 pre-orders for their Endurance light-duty, all-electric pickup, slated to begin production in September.

(Read More…)

By on November 17, 2020

If you think the political class is interested in what kind of policies citizens would like to see implemented, you’ve clearly never heard of lobbying groups. While we’re stuck at home writing thoughtful letters to congressional interns in the faintest hope that they’ll be dictated to a senator, corporately supported lobbyists are taking legislators out to dinner so they can discuss how best to govern on a single issue. They’re important in determining the trajectory of the nation but many get criticized for placing the needs of the business over that of the individual voter.

Buckle up, because we’re getting another one. On Tuesday, the Zero Emission Transportation Association (ZETA) held its own coming-out party and announced its mission to advocate for “national policies that will enable 100 [percent] electric vehicle sales throughout the light-, medium-, and heavy-duty sectors by 2030.”

(Read More…)

By on June 25, 2020

Lordstown Motors

Rivian wants to dazzle you with excessive range and dirt-flinging tank turns. Ford wants you to feel virtuous while behind the wheel of an F-150. General Motors wants to crush things beneath the wheels of the monstrous GMC Hummer EV.

Lordstown Motors’s electric pickup, on the other hand, doesn’t want to be everyone’s best friend. The fledgling automaker, owner of GM’s former Chevy Cruze plant in Northeast Ohio, unveiled its first product Thursday, beating Ford and GM to an electric pickup debut. (Read More…)

By on April 21, 2020

Lordstown Motors

Lordstown Motors is just one of the contenders vying for buyers in the yet unrealized electric pickup segment and, like the others, it isn’t immune (pardon the phrasing) from the coronavirus pandemic’s fallout.

After moving into a mothballed General Motors assembly plant in Northeast Ohio late last year, Lordstown Motors now says the virus has pushed back its production plans. (Read More…)

By on December 5, 2019

Image: GM

A battery plant mentioned in General Motors’ recently ratified UAW labor contract will soon become a reality in the hard-hit city of Lordstown, Ohio. That locale recently saw the lights go out at GM’s Lordstown Assembly, which closed its doors this spring after the discontinuation of the Chevrolet Cruze. The plant’s now in the hands of a fledgling electric automaker.

On Wednesday, GM announced the spending of $2.3 billion and the creation of 1,100 jobs in Lordstown — a necessary move to supply the automaker with battery packs for its electric vehicle push. (Read More…)

By on June 17, 2019

1972 Chevrolet Vega in Phoenix wrecking yard, RH rear view - ©2019 Murilee Martin - The Truth About Cars

The General made more than two million Chevrolet Vegas during the car’s 1971-1977 run, and the numbers climb much higher if you include the Vega-derived Chevy Monza and its siblings. The Vega’s many quality problems and rapid cheap-subcompact depreciation led to nearly all of these cars disappearing from American roads well before the dawn of the 1990s, but I still find the occasional example during my junkyard travels. Here’s an early Vega two-door hatch that seemed to be in pretty good shape before it hit a large animal on an Arizona road a couple of years back. (Read More…)

By on May 8, 2019

Image: Workhorse W-15, by Corey Lewis

In a surprising turn of events, President Donald Trump broke a hot bit of news on Wednesday, tweeting that electric truck maker Workhorse Group has closed a deal to buy GM’s mothballed Lordstown Assembly plant, formerly home to the Chevrolet Cruze.

The news came by way of GM CEO Mary Barra, Trump said, and the automaker isn’t denying the plant sale. (Read More…)

By on March 18, 2019

President Donald Trump weighed in on General Motors again this week. This time, the issue at hand was the fate of Lordstown Assembly — which was shuttered earlier this month as part of the automaker’s ongoing restructuring program.

“Just spoke to Mary Barra, CEO of General Motors about the Lordstown Ohio plant,” Trump tweeted on Sunday. “I am not happy that it is closed when everything else in our Country is BOOMING. I asked her to sell it or do something quickly. She blamed the UAW Union — I don’t care, I just want it open!”

Barra’s take on just how much the United Automobile Workers are to blame is questionable, but the president’s position is not.  (Read More…)

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