US EV Maker Lordstown Motors Files for Chapter 11 Bankruptcy Protection

Lordstown Motors Corp, a US-based OEM of electric light-duty vehicles focused on the commercial fleet market, has announced a strategic restructuring under Chapter 11 of the US Bankruptcy Code. It has also filed litigation against global technology company Hon Hai Technology Group and certain of its affiliates, including Foxconn Ventures Pte. Ltd.

The litigation alleges what it calls 'willful and consistent failure to live up to its commercial and financial commitments to the Company'. 

The complaint centres on a strategic partnership to combine Lordstown's innovation, technology, vehicle engineering team and manufacturing facility in Lordstown, Ohio with Foxconn's resources and supply chain capabilities.

Lordstown's Endurance is a fully homologated and certified, production-launched vehicle.

Edward Hightower, CEO and President of Lordstown, says: "As one of the early entrants to the EV industry, we have delivered the Endurance, an innovative and highly-capable EV with significant commercial and retail potential – and had subsequently engaged with Foxconn in a purposeful, strategic partnership to leverage this expertise into a broader EV development platform. Despite our best efforts and earnest commitment to the partnership, Foxconn willfully and repeatedly failed to execute on the agreed-upon strategy, leaving us with Chapter 11 as the only viable option to maximize the value of Lordstown's assets for the benefit of our stakeholders. We will vigorously pursue our litigation claims against Foxconn accordingly."

He adds: "We remain confident that an orderly, expedited sale process will maximize value for our stakeholders and enable the talent and technology behind the Endurance to find new and supportive ownership. While in Chapter 11, Lordstown will continue to support our customers. We are grateful for the Lordstown team for their commitment and dedication to our vision and to our customers, suppliers and business partners for believing in the Endurance and in the EV evolution." 

Lordstown Motors has engineering, research and development facilities in Farmington Hills, Michigan and Irvine, California.