Lordstown Motors investigating cause of truck fire
LORDSTOWN — Electric-vehicle startup Lordstown Motors Corp. is looking into what caused one of the companyás Endurance pickup trucks to catch fire Sunday at the Foxconn auto assembly plant.
The battery-powered truck, a non-salable test vehicle, was in storage when the fire started, according to the company Monday.
“Emergency protocols were followed and the Lordstown Fire Department was called to the scene,” according to statement from Lordstown Motors. “No one was injured and the company will investigate the cause of the fire.”
Firefighters were called just after 7:30 p.m. to the Hallock Young Road plant and left about two hours later, according to a report.
Messages were left Monday for more information with Lordstown fire Chief Travis Eastham.
In January 2021, a developmental version of the Endurance burst into flames on its first-ever road test in a suburb of Detroit. The fire destroyed the truck.
Foxconn acquired the massive factory last year for $230 million, allowing new Lordstown Motors’ leadership to further transition the company from manufacturing toward EV development and engineering. The company, however, has experienced troubles as of late.
Lordstown Motors has issued three recalls of the truck, its flagship vehicle, since limited production began in November. The company also announced in February it temporarily stopped production due to supplier parts issues that led to the recalls. Production resumed in April.
Now, Lordstown Motors finds itself grappling with Foxconn over future funding in a $170 million equity investment agreement the companies signed in November and trying to find a way to pump up the companyás poor performing stock price.
Without Foxconn closing on a common stock purchase worth about $47.2 million and other obstacles in Lordstown Motors’ way, the company has stated in regulatory filings it could be forced to file for bankruptcy protection.
The dispute with Foxconn started with an April 21 notice from the Taiwanese technology and electronics company it believed the EV maker was in breach of the investment agreement because of delisting notice the company received from Nasdaq.
Lordstown Motors has stated in regulatory documents the discussions with Foxconn are at an impasse, however, Foxconn Chairman Young Liu said recently the company remains “open to continued dialogue to find the best solution for each other.”
On Monday, Lordstown Motors stockholders at their annual meeting were expected to vote on a path to try to cure the sagging stock price through a reverse stock split. Doing so would consolidate the company’s existing shares into fewer shares with the intended result of a higher price.
Details were not available Monday, but are expected today.
The company has 180 days to come back into compliance with Nasdaq’s rule. The stock closed trading at 30 cents per share Monday, up 9.2 percent.