(Tiper Stock Exchange) – Lordstown Motorsthe American automaker of electric commercial vehicles, has announced a strategic restructuring process to maximize the value of its assets – its all-electric (EV) Endurance pickup and the intellectual property, platform and people who developed it.
As part of the process, Lordstown filed a lawsuit against Foxconn, in the United States Bankruptcy Court for the District of Delaware. The litigation will serve to resolve “the fraud of Foxconn e the intentional and consistent failure to meet its commercial and financial commitments“, underlines the company, according to which “Foxconn’s actions have caused material damage to the company and its future prospects”.
In addition, Lordstown is initiating a comprehensive marketing and sales process for the Endurance vehicle and related assets. To achieve this quickly and provide a prospective buyer with a going concern that is free from any pre-existing problems, Lordstown has begun a Chapter 11 bankruptcy proceedings.
“As an early entrant into the electric vehicle industry, we delivered the Endurance, an innovative and highly capable electric vehicle with significant retail and commercial potential – and subsequently engaged with Foxconn in a focused and strategic partnership to leverage this experience into a broader electric vehicle development platform – said the CEO Edward Hightower Despite our best efforts and earnest commitment to the partnership, Foxconn has deliberately and repeatedly failed to execute the agreed upon strategy, leaving us with the Chapter 11 as the only viable option to maximize asset value of Lordstown for the benefit of our stakeholders”.