US electric truck maker Lordstown Motors said it has filed for bankruptcy protection after failing to receive a promised investment from Taiwan's Foxconn, maker of the iPhone.
The maker of the Endurance electric pick-up trucks had commenced commercial production of its vehicle in September last year.
Lordstown and Foxconn are sparring over an agreement by the Taiwanese company to invest up to $170 million in the EV truckmaker, which would have given Foxconn all of Lordstown's preferred equity and 18.3% of its common stock, along with the right to nominate two members to the company's board of directors. Foxconn has so far invested $53 million in Lordstown and holds an 8.4 percent stake in the company. Now, Lordstown wants Foxconn to purchase equity as per their agreement, while Foxconn claims Lordstown has breached their original deal.
While filing Chapter 11 bankruptcy in the state of Delaware, the Ohio-based truckmaker, named after the town it is headquartered in, also filed suit against Foxconn for the promised sum.
According to Lordstown's lawsuit, Foxconn consistently shifted goal posts in their collaboration on future vehicles. The Taiwanese company is also accused of failing to meet funding commitments and backtracking on initiatives it had promised to support.
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