GM sells stake in Lordstown Motors

Jessica Thompson

DETROIT — General Motors has sold its stake in beleaguered EV startup Lordstown Motors.

GM sold its 7.5 million shares over the course of the fourth quarter, GM spokesman Jim Cain told Automotive News. The Detroit Free Press reported the sale earlier Tuesday.

GM invested in Lordstown in August 2020 “to help facilitate the sale of the plant and help give the company an opportunity to restart production,” Cain said.

In the fourth quarter, Foxconn agreed to purchase the plant for $230 million, and Lordstown began building and testing pre-production Endurance electric pickups, Lordstown said.

The supply agreements between Lordstown and GM remain intact, said Cain.

In 2020, GM agreed to provide Lordstown with parts, including airbags, steering columns and steering wheels. The agreement has been renewed through Dec. 21, 2026 and required a pre-payment of $17.8 million from Lordstown, according to a company filing.

Lordstown on Monday said it expects commercial production and sales of the Endurance to reach 500 units in 2022 and as many as 2,500 units in 2023.

Those targets are far below Lordstown’s original production goals. The company had expected to build 2,000 Endurance pickups in its first year, followed by 32,000 units during the first full year of production, according to CNBC.

Leave a Reply

Your email address will not be published. Required fields are marked *