Lordstown Motors filed for bankruptcy and sued Foxconn



Lordstown Motors filed for bankruptcy protection on Tuesday and filed a lawsuit against Foxconn, accusing its former partner of plotting to “destroy” the business.

The electric vehicle maker, which specializes in pickup trucks, filed a Chapter 11 lawsuit against Foxconn in Delaware court at the same time.

In a statement, the company said it had no choice after having a close relationship with Foxconn, the world’s largest electronics manufacturer.

He sued the Taiwanese tech company for fraud and failure to fulfill promises to invest in the company.

Lordstown CEO Edward Hightower said in a statement: “Despite our best efforts and commitment to cooperation, Foxconn’s deliberate and repeated failure to implement the agreed upon strategy has left Chapter 11 as our only viable option.”

Accordingly, we will aggressively pursue our claims against Foxconn.

Foxconn did not immediately respond to a request for comment.

Officially called Hon Hai Technology Group, Foxconn is best known for making iPhones for Apple ( AAPL ) but has recently moved into making electric vehicles. In the year In 2021, Lordstown Motors bought the Ohio plant it bought from General Motors in 2019.

In addition, Foxconn has agreed to host the production of Lordstown electric pickups at the site and to make additional investments. Certain milestones have been met.

But the partnership appears to have fallen apart earlier this year. In May, Lordstown said Foxconn was looking to make more investments after the automaker did not ratify the end of the deal.

That left the trouble maker in dire financial straits. Lordstown last month warned it could face bankruptcy.

– This is a developing story and will be updated.


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