LORDSTOWN, Ohio — Two weeks after announcing a pause in the production and delivery of its Endurance electric trucks, as well as a recall, Lordstown Motors (LMC) held its quarterly shareholders call this week.
"We now have line of sight to the resolution of the issues that resulted in the production pause and voluntary recalls and in the coming weeks, expect to announce when we will resume production and deliveries," announced Lordstown Motors CEO Edward Hightower.
On Feb. 23, LMC said it was suspending production and delivery of its Endurance electric trucks due to "performance and quality issues" with certain components. In addition, the company filed paperwork with the National Highway Traffic Safety Administration (NHTSA) to voluntarily recall the Endurance "to address a specific electrical connection issue that could result in a loss of propulsion while driving."
"We recognize and understand that this news is disappointing to our stakeholders. It is to our team as well," Hightower added. "New vehicle launches require time, experience and diligence, especially as vehicles transition towards electrification and the increased use of features, technologies and attributes driven by software.
Hightower reiterated the company's plan for an initial batch of up to 500 Endurance vehicles to be produced in 2023. He said 40 vehicles have been completed or are "in process," with six having been sold so far.
But despite the optimism, Hightower also said that because of the costs involved, another pause on the production of the Endurance could take place if LMC is unable to obtain a partnership with another manufacturer.
"Discussions with potential partners are ongoing," he stated. "We think it’s an attractive proposition, not only because the vehicle is in the second-most popular segment in the United States, which is full-size pickups, it’s one of the few full-size battery electric, full electric pickup trucks on the market today."
Hightower pointed to the fact that the Endurance has already been launched and in the marketplace as an enticement for a partner to come aboard. "We see that as an attractive and shorter path for another OEM (original equipment manufacturer) who wants to get into this attractive market. And if we don’t find that partner, we don’t see it making business rationale for us to spend that investment, significant investment ourselves. So, we would likely pause production until that partner is identified."
Something new in the works
While the company works to get the Endurance back in production, LMC says it is partnering with Foxconn on a new platform and electric vehicle program. The work is currently in the pre-development stage.
Taiwan’s Foxconn Technology Group, the world’s largest electronics maker, entered into a purchase deal with LMC in 2022. Foxconn assumed manufacturing operations at the Lordstown plant and took over the employment of approximately 400 LMC workers.
"The next platform and vehicle program are key to Lordstown Motors’ long-term business strategy and are becoming a greater portion of our company’s focus," Hightower explained. "While we are not ready to announce the details yet, I can tell you that this vehicle will serve growing battery electric vehicle commercial fleet segments that are different from those targeted by the Endurance."
