Lordstown Motors is looking for a new Chief Executive Officer (CEO) and a new Chief Financial Officer (CFO). The company hopes to start building an electric pickup named Endurance in the small town of Lordstown, Ohio, starting September. But some supposedly reliable pre-orders have proven to be air numbers. On Monday, company founder and CEO Steve Burns, his daughter and marketing director Brittney, and his CFO Julio Rodriguez had to take off their hats.
Mr. Burns also has to vacate his board seat but is comforted with $ 750,000. The incumbent chairwoman of the board of directors Angela Strand will temporarily take over his position. Mr. Rodriguez still gets $ 200,000 plus stock options. Becky Roof will take over his financial agendas for the time being. She is a manager at the consulting firm AlixPartners, which specializes in rescuing unstable companies.
And rescue needs Lordstown Motors: The pickup startup is in a serious crisis. “The company believes that its current funds are insufficient to finance the production in numbers and the market launch of such vehicles. These conditions cast substantial doubts on our (continued existence) for at least one year,” says the latest, belatedly submitted quarterly report.
Lordstown Motors wants to keep going
The previously proudly presented pre-orders of alleged fleet operators do not keep what they promise. An investigative committee of the Lordstown board of directors has found that an alleged major customer lacks the necessary change, while other orders come not from fleet operators, but from fleet managers or “influencers” who actually want to sell the e-vehicles to third parties. Other However, the committee of inquiry denies allegations of a short seller or depicts them as immaterial, including the fire of a prototype.
The new management put on a good face on Tuesday: The company continues to run normally. Even if pre-orders weren’t reliable, there would still be interested customers. As previously planned, production of the electric pickups is scheduled to start in September. The 2,200 vehicles planned for this year will not be there, however, but at most half as many.
An electric motorhome based on the Endurance, which is also planned, is being put on the back burner. Next week, financial analysts, journalists and investors in Lordstown will get an impression of the progress at the factory. The euphoria is gone on the stock exchange: The share price is a third of its 52-week high.