Lordstown considers letting other manufacturers into their factories
The financially troubled electric car start-up Lordstown Motors has a new idea to raise fresh capital: The company could share its production facility with other carmakers.
Lordstown is currently having “serious discussions with several potential partners” in this regard, Angela Strand, the company’s executive chair, told a conference call to discuss its latest quarterly results. “We expect many more to be attracted to the potential of our factory.”
Lordstown has a 575,000-square-foot plant in the town of the same name in the US state of Ohio that was formerly operated by General Motors. According to Strand, the plant and the surrounding area of about 260 hectares “could provide a lot of space for other manufacturers to produce components or vehicles at the site”. The decision to market the facility to other manufacturers also creates “significant new revenue opportunities for Lordstown”.
Strand did not yet indicate what exactly the contracts with other users might look like. There will likely be the possibility of “contract manufacturing opportunities, direct investment, subleasing of space or other options,” he said. Rich Schmidt, president of Lordstown Motors, said the company currently uses only about 30 per cent of the plant.
According to the quarterly report, production of the company’s own Endurance electric pickup truck is scheduled to begin on a limited basis in late September. Commercial deliveries, however, are not expected until the second quarter of 2022, as regulatory approvals for the vehicle are not expected until early 2022.
The listed company closed the second quarter with a net loss of 108 million dollars (92 million euros). As recently as the beginning of June, the company had officially warned of going-concern risks for the company in a notice to the US Securities and Exchange Commission.