As reported by trade publication Automotive News, Lordstown Motors Corp. filed for Chapter 11 bankruptcy protection on Tuesday, a step toward the end of a startup electric truck maker based in Lordstown, Ohio. The filing comes after a flood of disappointing news for the company, including the collapse of a promise from Taiwan’s Foxconn to invest up to $170 million in the venture.
Lordstown started in 2018 as a media and investors’ darling, taking its name from the former General Motors small-vehicle factory it bought and refitted for EV truck production in the northeastern Ohio town. The company went public in October 2020 (peak pandemic) and has since changed management after a struggle to meet expectations. Its electric truck, the Endurance, rolled off the line at a very slow rate and with material costs “substantially higher than our selling price,” according to a regulatory filing quoted by Automotive News.
The relationship with Foxconn, which began with a reported cash infusion of $52.7 million, soured over time as production snags grew and serious competition from the Ford F-150 Lightning and Rivian R1T threatened the Endurance’s place in the market. Lordstown’s stock price has collapsed, and without Foxconn in place as a potential buyer and savior, the EV maker’s future is shaky at best.
