Lordstown Motors RIDE has announced that it has started commercial production of its Endurance full-size pickup truck at the Foxconn EV Ohio plant.
The first two commercial release production Endurance vehicles have already rolled off the assembly line, and the third is to be completed shortly. The original equipment manufacturer intends to build 500 vehicles for sale, and the initial three vehicles are part of the first batch of the same.
Though production will initially be at a slow pace given the supply chain constraints and parts shortage, it is expected to ramp up gradually through November and December.
FMVSS crash testing has been finished successfully, and EPA and CARB applications have been submitted. The company anticipates delivering nearly 50 units to customers in 2022 and the remainder of the first batch in the first half of 2023, given it can raise sufficient capital.
Lordstown went public by a special purpose acquisition merger in 2020, but the manufacturer has struggled to start production rolling. Last year, the company warned that it might run out of funds to bring its EV to market. Following the concern, it was bailed out by an investment firm that agreed to purchase $400 million worth of shares over a three-year period. Therefore the EV announcement is a noteworthy step for the company as its production wheels roll off for the Endurance truck.
The company sold its Ohio factory to Foxconn in 2021-end for $230 million, and the two companies entered into a joint venture for EVs. The funding from the deal and other capital-raising alternatives will be beneficial for scaling up production.
Lordstown, which belongs to the Zacks Auto-Tires-Trucks sector, competes with peers like BorgWarner BWA, Allison Transmission ALSN and American Axle Holdings AXL.
BorgWarner’s Charging Forward project to accelerate its electrification strategy bodes well. The company is likely to benefit from soaring EV popularity and expects hybrid and electric technologies to be its major revenue drivers. BorgWarner’s 2022 electrification revenues are expected to increase to more than $850 million, doubling from 2021 levels.
Allison’s strategic buyouts are likely to bolster long-term growth. Acquisitions of Walker Die and C&R Tool & Engineering have enhanced the quality of its on-highway transmissions. Buyouts of Vantage Power and AxleTech’s EV systems division have accelerated Allison’s electrification strategy, expanding its system and integration level capabilities in alternative propulsion.
American Axle is focused on making considerable progress across the electric drive space. Collaborations with Inovance and REE Automotive bode well for American Axle’s prospects and are set to fuel electrification revenues.
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