Lordstown Motors freezes manufacturing to deal with high quality points

Lordstown Motors’ problems aren’t over simply because it is manufacturing electrical pickup vehicles. The fledgling model is pausing manufacturing and buyer deliveries to assist it deal with “efficiency and high quality points” with some elements in its Endurance truck. Accordingly, it is partnering with the Nationwide Freeway Site visitors Security Administration (NHTSA) on a voluntary recall to repair a connection drawback that would minimize motor output whereas driving.

The recall will have an effect on 19 automobiles already on the street, a few of which have been in use at Lordstown. The corporate is not providing an estimate as to when manufacturing will resume, however claims it is making “vital progress” on part and subsystem points holding up manufacturing. Extra particulars are anticipated to come back when the agency holds its subsequent earnings name on the morning of March sixth.

The freeze is tiny in comparison with points at rivals like Tesla, which has recalled hundreds of thousands of cars (if often for software-only issues). Nevertheless, Lordstown hasn’t made many pickups to this point — it solely delivered the primary vehicles from its preliminary 500-unit wave in November, and stated final yr that it solely anticipated to promote 3,000 Endurance fashions via 2023. The halt and recall are proportionately large.

Lordstown additionally does not have a lot respiratory room. GM sold its stake in late 2021, only a few months after Lordstown warned it didn’t have enough money to make its signature truck. The startup then raised funds by promoting its plant to manufacturing heavyweight Foxconn. It deepened the relationship in November in alternate for 2 Foxconn-chosen seats on the board of administrators. There’s strain on Lordstown to show issues round, and setbacks like this do not assist.

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