Lordstown Motors Files For Bankruptcy Protection; Sues Foxconn

(RTTNews) - Lordstown Motors Corp. (RIDE), an equipment manufacturer of electric light-duty vehicle, said it filed for Chapter 11 bankruptcy protection and it has commenced a comprehensive marketing and sale process for the Endurance vehicle and related EV assets.

In addition, Lordstown filed litigation against global technology company Hon Hai Technology Group and certain of its affiliates, including Foxconn Ventures Pte. Ltd., in the United States Bankruptcy Court for the District of Delaware.

Lordstown had agreed to divest its most valuable assets to Foxconn, namely its Lordstown, Ohio manufacturing facility, which is one of the largest in North America, along with its manufacturing and operational employees.

Lordstown's lawsuit details the fact that Foxconn had no intention of living up to its commitments, particularly with respect to the new vehicle development platform.

Lordstown alleged that Foxconn simply used its variety of contractual arrangements with the Company as a tool to maliciously and in bad faith destroy Lordstown's business—while leveraging resources gained through the partnership to advance its own business interests.