S. Dent@stevetdentMarch 2nd, 2022In this post: news, equipment, standard motors, electrical pickup, EVs, Lordstown Motors, divesting, GM, manufacturing unitREUTERS/Rebecca Cook
Common Motors has marketed its stake in struggling electrical pickup maker Lordstown Motors, TechCrunch has described. It reportedly unloaded its 5 p.c financial investment (really worth $75 million originally) in the fourth quarter of 2021, as initially disclosed by The Detroit No cost Push and confirmed by GM.
Lordstown not too long ago noted a decline of $81.2 million for the fourth quarter, and mentioned in an earnings connect with before this 7 days that it planned to market only 3,000 of its Endurance electrical vans by 2023 — a much cry from the 32,000 it predicted when it went community by means of a SPAC deal again in 2020. It aims to build 500 of these this calendar year, but it will will need to elevate an supplemental $250 million to do so.
Final 12 months, Lordstown warned that it did not have ample income to develop its electric trucks. Later in 2021, the SEC declared that it was investigating the firm, and then-CEO Steve Burns was subsequently pushed out soon after he was identified to have lied about the number of Endurance pre-orders.
GM obtained included with Lordstown Motors right after closing its Lordstown, Ohio plan in 2019, and selling it to EV manufacturer Workhorse, launched by Burns. Burns subsequently started out Lordstown Motors with the aim setting up electric powered pickups at the plant, and obtained $75 million in expense from GM. The thought was to comply with the route of Rivian and develop electric pickups for firms, but it can be now in competing in a tougher current market versus giants like Ford, which recently released the F-150 Lightning pickup.
Lordstown Motors not too long ago disclosed that it didn’t have ample money to past by means of to 2023, so it subsequently agreed to sell the Lordstown plant to Foxconn for $230 million and hire room in it. Even so, Lordstown claimed that the deal is not as far alongside as they’d anticipated, a scenario that’s compounding the firm’s issues.
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