Lordstown Motors
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Lordstown Motors Corporation (LMC) is an American
electric vehicle An electric vehicle (EV) is a vehicle that uses one or more electric motors for propulsion. It can be powered by a collector system, with electricity from extravehicular sources, or it can be powered autonomously by a battery (sometimes cha ...
automaker The automotive industry comprises a wide range of companies and organizations involved in the design, development, manufacturing, marketing, and selling of motor vehicles. It is one of the world's largest industries by revenue (from 16 % such a ...
located in
Lordstown, Ohio Lordstown is a village in southern Trumbull County, Ohio, United States. The population was 3,332 at the 2020 census. It is part of the Youngstown–Warren metropolitan area. Lordstown is best known as the home of the Lordstown Assembly, a Ge ...
. The company is based at the
Lordstown Assembly The Lordstown Complex is a factory building and automotive manufacturing plant in Lordstown, Ohio, U.S. Lordstown is an industrial suburb of Youngstown, Ohio. It was a General Motors automobile factory from 1966 to 2019, comprising three faci ...
plant which previously belonged to
General Motors The General Motors Company (GM) is an American Multinational corporation, multinational Automotive industry, automotive manufacturing company headquartered in Detroit, Michigan, United States. It is the largest automaker in the United States and ...
.


History

Lordstown Motors was founded in 2018 by Steve Burns, former CEO of
Workhorse Group Workhorse Group Incorporated, originally AMP Electric Vehicles, is an original equipment manufacturer and technology company headquartered in Cincinnati, Ohio, U.S. Workhorse makes electric delivery vans, drones, and telematics software designe ...
. On November 7, 2019, Lordstown Motors became the owner of the former GM Lordstown plant, after signing a sales agreement with automaker General Motors in May 2019. GM loaned Lordstown Motors in order to underwrite a substantial part of the plant purchase. In March 2020, Lordstown Motors paid Workhorse Group US$12 million dollars for the licensing rights to the intellectual property of the Workhorse W-15 pickup truck. Lordstown Motors intends on developing its own electric pickup truck based upon Workhorse's preexisting design. As part of the business deal, Workhorse Group was given a 10%
equity Equity may refer to: Finance, accounting and ownership * Equity (finance), ownership of assets that have liabilities attached to them ** Stock, equity based on original contributions of cash or other value to a business ** Home equity, the dif ...
stake in Lordstown Motors. In October 23, 2020, Lordstown reverse merged with a special-purpose acquisition company (SPAC) named DiamondPeak Holdings and became listed on the
NASDAQ The Nasdaq Stock Market () (National Association of Securities Dealers Automated Quotations Stock Market) is an American stock exchange based in New York City. It is the most active stock trading venue in the US by volume, and ranked second ...
. The merger gives Lordstown Motors an estimated equity value of US$1.6 billion. On the same day, GM released Lordstown Motors from its mortgage obligations related to the purchase of the Lordstown factory. In January 2021, the company announced the opening of a vehicle service center in Irvine,
California California is a U.S. state, state in the Western United States, located along the West Coast of the United States, Pacific Coast. With nearly 39.2million residents across a total area of approximately , it is the List of states and territori ...
to support customers in the
Southern California Southern California (commonly shortened to SoCal) is a geographic and Cultural area, cultural region that generally comprises the southern portion of the U.S. state of California. It includes the Los Angeles metropolitan area, the second most po ...
region. It is Lordstown's first service center outside of Ohio, with California chosen due to "the favorable regulatory backdrop in the state, which is aggressively promoting more widespread adoption of electric vehicles", according to the company. In March 2021, the investment research firm
Hindenburg Research Hindenburg Research LLC is an investment research firm with a focus on activist short-selling founded by Nathan Anderson in 2017 and based in New York City. Named after the 1937 Hindenburg disaster, which they characterize as a human-made avoidab ...
that specializes in
short-selling In finance, being short in an asset means investing in such a way that the investor will profit if the value of the asset falls. This is the opposite of a more conventional "long" position, where the investor will profit if the value of the ...
published a lengthy report about Lordstown supporting its short position in the stock. In the report, Hindenburg presented evidence that it said demonstrated a history of fraud at Lordstown, with the company misleading investors by exaggerating demand and orders for its trucks, as well as Lordstown's ability to build these trucks. Hindenburg's report showed that thousands of Lordstown's claimed orders were non-binding, no-deposit indications of interest by companies without the apparent financial strength to support the size of the orders. The report also claimed significant production delays beyond Lordstown's claimed timeline with trucks three to four years away from production, stock sales by insiders amidst vehicle testing problems, and irregularities in the background of Lordstown's founder, Steve Burns. Lordstown's stock dropped 17% on the day of the news. The company responded with a statement saying, “We will be sharing a full and thorough statement in the coming days, and when we do we will absolutely be refuting the Hindenburg Research report.” The Hindenburg Research report led to the
US Securities and Exchange Commission The U.S. Securities and Exchange Commission (SEC) is an independent agency of the United States federal government, created in the aftermath of the Wall Street Crash of 1929. The primary purpose of the SEC is to enforce the law against market ...
(SEC) requesting information from Lordstown Motors regarding the short-seller's claims of misleading investors. It was also revealed in March 2021 that one of Lordstown's prototypes caught on fire, with the company claiming the fire was caused by "human error" and that the issue had been solved by Lordstown now automating the manufacturing of its vehicles. On June 8, 2021, Lordstown Motors amended its annual report with the SEC and said that the company did not have enough money to begin commercial production of its vehicle, and that Lordstown Motors is at risk of bankruptcy. Subsequently, both the CEO Steve Burns and CFO Julio Rodriguez resigned from their positions on June 14. While the official press release states this is in anticipation of changing from R&D to Production, the non-binding nature of the pre-sale agreements has been brought into question after revelations that the largest three purchasers were not committed to acquiring the Lordstown production vehicle (and most did not have the means to even do so if they wanted to). An independent investigation commissioned by the board found that the pre-order agreements were overstated in number and in seriousness in order to generate press. In August 2021, veteran automobile executive Daniel Ninivaggi, former CEO of
Icahn Enterprises Icahn Enterprises L.P. is an American conglomerate headquartered at Milton Tower in Sunny Isles Beach, Florida. The company has investments in various industries including energy, automotive, food packaging, metals, real estate and home fashion. ...
, was named as the new CEO. In October 2021, Lordstown Motors announced a $230 million deal to sell the former GM plant to Foxconn Technology Group, which would become a contract assembler for the company's Endurance pickup truck. It was announced Foxconn would also invest $50 million into the company through a purchase of common stock. The Foxconn deal was finalized in May 2022, and Foxconn and Lordstown Motors created a new joint-venture, MIH EV Design LLC, to develop and produce a lineup of EV vehicles. In addition to selling the factory to Foxconn, Foxconn will become the contract manufacturer for Lordstown Motors’ first vehicle, the all-battery Endurance pickup truck. Foxconn will also use the factory as the production hub for the Fisker PEAR electric vehicle. Although at one time, GM had invested US$75 million in Lordstown Motors, and obtained a seat on Lordstown Motors' board of directors, and listed Lordstown Motors in its Tier 1 supply chain, in March 2022, GM released public information that they had sold off their "small investment" in Lordstown Motors at the end of 2021. In July 2022, automotive industry veteran Edward Hightower was named the new CEO. In November 2022, FoxConn invested another $170m (£147.8m) on shares, in an effort to ramp up the production of the company's debut model.


Vehicles

The
Lordstown Endurance The Lordstown Endurance is a full-size battery electric pickup truck with wheel hub motors manufactured by Lordstown Motors in collaboration with Foxconn at its Ohio factory. The Endurance entered production in September 2022. It is the company's ...
is an in-development
all-wheel-drive An all-wheel drive vehicle (AWD vehicle) is one with a powertrain capable of providing power to all its wheels, whether full-time or on-demand. The most common forms of all-wheel drive are: ;1x1 : All unicycles Reflecting one axle with one w ...
(AWD), electric
pickup truck A pickup truck or pickup is a light-duty truck that has an enclosed cabin, and a back end made up of a cargo bed that is enclosed by three low walls with no roof (this cargo bed back end sometimes consists of a tailgate and removable covering) ...
. Its design includes independent
wheel hub motor The wheel hub motor (also called wheel motor, wheel hub drive, hub motor or in-wheel motor) is an electric motor that is incorporated into the hub of a wheel and drives it directly. History * First wheel motor concept: Wellington Adams of ...
s on all four wheels. The AWD hub motor system aims to reduce the amount of moving parts with no wheel axles or a transmission. In 2019, the truck was expected to be released in the US market by late 2020, at a price of . In November 2020, the release date was delayed, pushing the first deliveries back to September 2021, with production ramping up through 2022. By October 2021, the announced production date for the Endurance had been delayed until no earlier than April 2022, following the September news that the Lordstown auto plant would be sold to
Foxconn Hon Hai Precision Industry Co., Ltd., trading as Hon Hai Technology Group in China and Taiwan and Foxconn internationally, is a Taiwanese multinational electronics contract manufacturer established in 1974 with headquarters in Tucheng, New ...
and that Foxconn would become the contract manufacturer of the Endurance. In October 2021, Foxconn unveiled three new prototype vehicles: the model 3 SUV scheduled to go on sale in 2023 in Taiwan, an electric bus that is planned to be tested in select cities in 2022, and a new electric sedan. On August 4, 2022, the company admitted to further production delays for the Endurance, citing they would need to raise ''"substantially more capital"'' to produce the initial goal of 500 vehicles, and is now expecting to start delivery of vehicles to customers by the end of the year.


See also

*
Lordstown Assembly The Lordstown Complex is a factory building and automotive manufacturing plant in Lordstown, Ohio, U.S. Lordstown is an industrial suburb of Youngstown, Ohio. It was a General Motors automobile factory from 1966 to 2019, comprising three faci ...
*
Workhorse Group Workhorse Group Incorporated, originally AMP Electric Vehicles, is an original equipment manufacturer and technology company headquartered in Cincinnati, Ohio, U.S. Workhorse makes electric delivery vans, drones, and telematics software designe ...


References


External links

* {{Automotive industry in the United States American companies established in 2019 Companies listed on the Nasdaq Electric vehicle manufacturers of the United States Motor vehicle manufacturers based in Ohio Vehicle manufacturing companies established in 2019 Battery electric vehicle manufacturers Special-purpose acquisition companies