Lordstown Motors files for bankruptcy and sues Foxconn
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The electric truck maker Lordstown Motors filed for Chapter 11 bankruptcy protection on Tuesday and put its assets up for sale. It also sued Foxconn, accusing the Taiwanese manufacturer of not holding up its end of a development deal. Wp Get the full experience. Choose your plan ArrowRight The two companies had entered into a strategic partnership in which Lordstown had agreed to divest its manufacturing facility in Ohio. In turn, Foxconn would facilitate a vehicle development program, leaning on its vast global supply chain network.
Lordstown, which operates out of a former General Motors plant, said it’s looking to sell its Endurance pickup and related assets. Its shares sank nearly 40 percent in morning trading.
The start-up accused Foxconn of operating in bad faith, leading to material damage in a “willful and consistent failure to live up to its commercial and financial commitments.”
Foxconn rejected those claims in a statement released Tuesday, calling them an attempt to mislead the public. Foxconn said that it had been trying to help Lordstown through its financial difficulties.
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Source: The Washington Post
