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Lordstown Motors Declares Chapter 11 Bankruptcy and Initiates Legal Action against Foxconn



The electric truck maker Lordstown Motors filed for Chapter 11 bankruptcy protection Tuesday and sued business partner Foxconn for allegedly reneging on an investment deal, delivering a blow to a venture that Donald Trump hailed during his presidency as a boon for Ohio.

The actions followed several years of trouble at Lordstown, which managed to produce only 65 of its Endurance pickups since the company’s 2018 founding and its takeover of a former General Motors factory in Lordstown in northeastern Ohio.

In its bankruptcy filing, Lordstown said it will pursue a sale of its assets and reduce its 243-person staff to a skeleton crew able to oversee the sale and complete previously ordered vehicles.

The company’s bankruptcy is a far cry from the bright future Trump predicted when he praised the start-up for taking over a shuttered GM factory in 2019. “With all the car companies coming back, and much more, THE USA IS BOOMING!” Trump tweeted in 2019. In a 2020 visit with Trump at the White House, a Lordstown executive predicted the company would eventually manufacture 100,000 trucks a year.

Lordstown’s troubles underscore the difficulty of scaling up a new auto company amid fierce competition in the electric-vehicle market. The transition to EVs has spawned dozens of new automakers across the globe, some of which have stumbled on the expensive and complex work of mass-producing vehicles.

EV makers poised for a shakeout — just like the early days of auto industry

The shift to electrification is unleashing a sweeping retooling of the auto industry that is creating uncertainty for workers, who are winning vehicle manufacturing jobs in certain parts of the country and losing them in others.

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