Electric truck maker Lordstown Motors goes bankrupt and sues Foxconn
Lordstown Motors (RIDE.O), a U.S. electric truck manufacturer, has filed for bankruptcy protection and put itself up for sale after a dispute with Taiwan’s Foxconn over a promised investment.
The company filed for Chapter 11 protection in Delaware on Tuesday and sued Foxconn in the same court, accusing the electronics giant of fraud and breach of contract.
Lordstown claimed that Foxconn failed to honour an agreement to invest up to $170 million in the electric-vehicle maker and engaged in deceptive conduct to avoid its obligations.
The bankruptcy and lawsuit mark a dramatic downfall for Lordstown, which was once touted as a revival story for the former General Motors plant in Ohio where it planned to produce its Endurance pickup truck.
The legal battle could also raise questions about Foxconn’s EV ambitions and partnerships, not only with Lordstown but also other automakers such as Fisker and Stellantis.
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