Lordstown Motors bankruptcy accuses Foxconn of trying to “destroy” its business

Electric vehicle startup Lordstown Motors is filing for bankruptcy and suing Foxconn, one of Apple’s top iPhone makers, after a deal between the two companies failed. In A press release posted on MondayLordstown Motors claims that Foxconn’s “fraudulent and willful and persistent failure to meet its commercial and financial commitments” resulted in “material damage” to the EV company.

Lordstown blamed Foxconn for the bankruptcy filing, alleging that the Apple supplier had “no intention of meeting its commitments.” It also claimed that Foxconn used its agreements with the company “maliciously and in bad faith to destroy Lordstown’s business – while taking advantage of the resources gained through the partnership to advance its own business interests.” done for.”

LMC (Lordstown Motors Corporation) has consistently attempted to mislead the public and has been reluctant to execute the investment agreement between the two parties on its terms. Foxconn originally hoped to continue discussions and reach a solution that satisfies all stakeholders without resorting to groundless legal actions, but so far the two sides have not reached a consensus.

Lordstown says it will undergo a restructuring process that includes auctioning off its assets, including the rights to its Endurance EV platform. Lordstown starts shipping the first batch 500 Endurance EV pickup last November.

“Despite our best efforts and sincere commitment to the partnership, Foxconn has deliberately and repeatedly failed to execute on the agreed upon strategy, leaving Lordstown as the only viable option to maximize the value of the assets for the benefit of our stakeholders. I’m left with Chapter 11.” Edward Hightower, CEO and President of Lordstown, said in the press release. “We will accordingly vigorously pursue our litigation claims against Foxconn.”