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+--- Thread: Automotive News Cash-strapped Lordstown may tap the brakes on Endurance production (/showthread.php?tid=4757)
Cash-strapped Lordstown may tap the brakes on Endurance production - OEM - 05-05-2023
Cash-strapped Lordstown may tap the brakes on Endurance production
<p>Lordstown Motors on Thursday reported a steep fall in its cash reserves and warned it might have to stop making its Endurance electric pickup truck in the near future unless it finds a partner.</p>
<p>The cash-strapped <a href="https://www.autonews.com/topic/lordstown-motors" target="_blank">EV maker</a> had earlier this week said it might be forced to file for bankruptcy, citing uncertainty over a $170 million investment deal with its major shareholder Foxconn.</p>
<p>Lordstown, named after the town in Ohio where it is based, said on Thursday it was in talks with the Apple supplier but was yet to reach a deal.</p>
<p>In May 2022, Lordstown Motors completed a deal to sell its Ohio factory for $230 million to <a href="https://www.autonews.com/mobility-report/foxconn-considers-wisconsin-or-mexico-maiden-ev-plant" target="_blank">Foxconn</a>, excluding assets such as the hub motor assembly and battery pack lines.</p>
<p>Foxconn will make Fisker Inc's <a href="https://www.autonews.com/topic/electric-vehicles" target="_blank">electric</a> compact car at the Ohio factory starting next year, the EV startup has said.</p><p>Lordstown Motors had cash and cash equivalents of $108.1 million as of March 31, down from $203.6 million a year earlier.</p>
<p>Shares were little changed, having hit a record low of 25 cents on Monday.</p>
<p>Lordstown Motors and its EV peers have been struggling as access to capital tightens from rising interest rates and mounting economic uncertainty.</p>
<p>The company had resumed production of Endurance in March after a pause in February to address quality issues.</p>
<p>It said in February that it had made only 37 trucks for sale and recalled 19 vehicles delivered to customers or being used internally.</p>
<p>Net loss ballooned to $171.1 million in the quarter ended March 31, the company said on Thursday, from $89.6 million a year earlier.</p>
<p>Lordstown Motors had previously warned of substantial doubt about its ability to continue as a going concern, citing liquidity issues.</p>
https://www.autonews.com/manufacturing/lordstown-might-tap-brakes-endurance-production