Lordstown Motors Issues Third Recall of Endurance
LORDSTOWN, Ohio – Lordstown Motors Corp. has issued a third recall of its signature pickup, the all-electric Endurance, according to a new filing with the National Highway Traffic and Safety Administration.
The electric-vehicle manufacturer issued the voluntary recall April 20, after a customer reported that the Endurance’s display panel froze after it started, according to NHTSA.
According to the filing, important driver information such as the speedometer, battery charge gauge and certain indicator and warning messages, as well as acoustic warnings, would not display in the event of a malfunction, increasing the risk of a crash.
The issue affects five vehicles that received recent software upgrades, the company said. Lordstown Motors said it has since updated the software to remedy the display issue and would update the other models that are affected by the recall.
Owners and dealers were sent notifications this week regarding the recall.
It is the third recall of the Endurance within a 60-day period.
On Feb. 21, Lordstown Motors issued a recall of 19 vehicles after it was discovered that a faulty electronic component caused the Endurance to lose propulsion. Once the vehicle is stopped, “it may automatically shift in neutral” and not restart, according to an earlier NHTSA filing by Lordstown Motors.
Then on March 1, Lordstown Motors issued a voluntary recall on seven models of the Endurance, citing a parts defect in the pickup’s braking system.
Lordstown Motors announced in February that it had halted production of the Endurance. The company resumed production on April 18 “at a very low pace.”
The company launched production of the Endurance during the third quarter of 2022 and began commercial deliveries in November. Lordstown Motors produces the Endurance at Foxconn’s plant in Lordstown.
Shares of Lordstown Motors, which trades under the ticker RIDE, have taken a hit over the past several months. On Tuesday, RIDE shares closed at 47 center per unit. On Monday, RIDE’s stock value dropped as low as 25 cents per share before closing at 40 cents.
On Monday, major investor Foxconn informed Lordstown Motors it might terminate its investment agreement with the company unless it regains compliance with Nasdaq rules within 30 days. Last month, Nasdaq issued a delisting notice to Lordstown Motors indicating its stock value failed to meet the exchange’s minimum bid requirement of $1 for 30 consecutive trading days.
Foxconn alleges that Lordstown Motors is in breach of a $170 million investment agreement the parties signed in November. Lordstown Motors has alleged Foxconn is in breach of the agreement.
Should Foxconn terminate its investment, Lordstown Motors said it could consider filing for bankruptcy.
Foxconn said in a statement Tuesday that it remains “open to continuing our discussion and working together to reach a mutually acceptable outcome that benefits our respective stakeholders. Foxconn vigorously disputes any claim by Lordstown Motors that Foxconn is in breach of the investment agreement. Foxconn has and will continue to fulfill its obligations and duties under the Investment Agreement in all material respects.”
Copyright 2023 The Business Journal, Youngstown, Ohio.