‘Those jobs have left Ohio, they’re all coming back. Don’t move. Don’t sell your house.” – Trump in Youngstow 2017.
Everything Trump Touches Turns to Shit. Nuff Said
Struggling electric-truck maker Lordstown Motors filed for Chapter 11 bankruptcy protection Tuesday and said that it would put itself up for sale amid an ongoing dispute over investments that had been promised by Taiwanese manufacturer Foxconn.
Simultaneously with its bankruptcy filing, Lordstown filed a suit against Taiwan’s Foxconn. The company accused Foxconn of fraud and of failing to abide by an agreement that called for the Taiwan-based firm to invest up to $170 million in Lordstown, and for the two to work together on a range of new electric vehicles.
Foxconn paid the first $52.7 million due under that deal last year. The next payment, of $47.3 million, was due within 10 days of regulatory approval by the Committee on Foreign Investment in the United States. That approval was secured in late April, Lordstown said — but Foxconn never made the payment. Instead, Foxconn told Lordstown that the startup had breached the deal by allowing its stock price to fall below $1 per share. Lordstown executed a 1:15 reverse stock split in May, pushing its share price back over the critical $1 mark.
✱Lordstown Motors lost $171 million in this year’s first quarter. It said it had $108 million cash at the end of the quarter.
In 2019 Hundreds of GM workers gathered in solemn prayer in Ohio
CNBC and The Youngtow Vindicator
◾️In 2019 Lordstown Motors purchased GM’s Lordstown Assembly plant for $20 million, as part of the deal GM loaned LMC $50 million.
◾️Two years later, LMC agreed to sell the plant to Foxconn for $230 million.
✱According to the Trumbull County Auditor’s office, Foxconn EV Property Development LLC purchased the nearly 600 acres and buildings for $78.5 million from Lordstown Motors Corp.
Lordstown Motors reported on May 11 that it had finalized an asset purchase agreement with Taiwan-based Foxconn worth more than $230 million.
◾️In September 2020 LMC (RIDE) stock hit a high of $31.80. Its low was 25¢. After the 15-1 reverse stock split, it’s at $2.06. Pre reverse stock split that share would be about 14¢.
◾️LMC is under investigation by the SEC, as well as the DOJ.
◾️The GM plant once employed over 13,000. It now employs around 500.
◾️The beginning of a series of bad events for Lordstown Motors started on January 13, 2021 when the prototype of the Endurance pickup ominously caught fire and was totally destroyed in it’s first ten minutes of operation.
✱ Another pickup caught on fire at the plant in May of this year.
◾️The Endurance pickup was entered in the San Felipe 250 Race in Baja California on April 17. It completed less than 40 miles of the 280-mile race before having to withdraw crying no mas.
◾️Lordstown Motors’ big fall came when it was discovered that its 100,000 preorders for the pickup were all fake. It actually had ZERO.
Through the first quarter, only 6 pickups have been sold, they have been recalled twice.
Rumor has it, that Lordstown’s name will soon become Taiwantown.
This is one of many Lordstown Motors reports, here’s the last one.
