Lordstown Motors, a struggling electric vehicle (EV) startup, may be facing even more problems as its partnership with Foxconn, a major Taiwanese electronics manufacturer, appears to be faltering. According to a Bloomberg report, Foxconn has only managed to build 40 Endurance pickups since the first truck rolled off the assembly line six months ago.
Lordstown Motors has faced a series of challenges in recent years, including management shakeups, production delays, and quality issues. Foxconn stepped in to help by purchasing the factory from General Motors and taking a stake in the company. The partnership was seen as a way for Lordstown Motors to leverage Foxconn’s manufacturing expertise and expand its EV lineup.
However, the companies have hit a roadblock with the Endurance pickup, which has experienced production and performance issues. In January, Lordstown asked Foxconn to suspend production of the truck due to high costs, and production was later halted due to problems with propulsion, chassis, and infotainment. The company also had to recall 19 trucks due to power loss while driving.
See also: Lordstown starts production of the Endurance electric pickup truck
During its Q4 2022 earnings call, Lordstown Motors revealed that it may have to abandon the Endurance pickup if it cannot partner with a more experienced automaker. The truck reportedly costs more to produce than its selling price, and raising prices further would make it less competitive with rivals like the Ford F-150 Lightning and the Rivian R1T.
Lordstown Motors is banking on a future vehicle program with Foxconn and the MIH consortium, but the details of this project remain unclear. The companies are said to be developing a new model targeting a different segment of the commercial industry, but it is not clear if this will be enough to save Lordstown Motors from its current financial woes.
Foxconn’s initial investment of $100 million in Lordstown Motors is reportedly being set aside for the future project, which Lordstown will lead in design, engineering, development, testing, and homologation. However, it appears that Foxconn may have underestimated the challenges of producing EVs, especially in a highly competitive market.
As Lordstown Motors struggles to stay afloat, the company may need a lifeline from an experienced OEM that can help bring down production costs and make its vehicles more competitive. Without such support, the company’s future looks increasingly uncertain.
See also: Lordstown Motors Faces Setback as Endurance EV Production Paused Amid Voluntary Recall
As Lordstown CEO Daniel Ninivaggi acknowledged during the earnings call, “Without some sort of financing or capital raise, it’s going to be very difficult for us to move forward with any of these programs and projects that we have going on.”
