Lordstown Motors wants to loan some space at the former General Motors plant it owns. This is as the struggling startup moves closer to building its first Endurance pickup trucks. Angela Strand, interim CEO, shared Wednesday that Lordstown has been in serious talks... with several potential partners. This would allow the startup to act as a WeWork for manufacturing.Strand stated that this is a crucial strategic pivot for us. It will result in significant new revenue opportunities to Lordstown, while production of the Endurance continues to ramp up.The current footprint covers about 30% of the plant's 6.2 million square foot. This gives us ample space for potential partners to construct vehicles, for us and for other [Lordstown Motors] vehicles platforms to be built. President Rich Schmidt also added.This pivot is crucial for usThe plan was shared by Strand and Schmidt during a conference call with investors, where the company reviewed its second quarter financial results. Lordstown Motors lost $108 million during the quarter. The company had previously stated that it would run out of cash in May 2022 without additional funding. Recent equity purchase agreements with a hedge fund helped the company to increase its capital. The startup is still seeking additional funding to finance its production schedule for the Endurance. It won't be able to make any money until the vehicles start shipping in 2022, which is the same time as Fords F-150 Lightning.These funding efforts include the possibility of allowing other companies to use factory facilities, finding strategic partners, investors, and financing with debt. Strand, who signed a $500,000 five-month deal with Lordstown to be the captain of the ship while the company searches for a permanent CEO, said that the startup is currently in discussions with several potential lenders and companies. Lordstown Motors is also working to obtain a third-party appraisal on the factory's value, equipment inside, and any improvements made by the startup, which could increase Lordstown's ability to borrow against the plant.Lordstown Motors' short, but turbulent history has seen the former GM plant play a significant role. The company was actually founded with the intention of purchasing the factory in the early 2019 period.Lordstown Motors' short history has seen an ex-GM plant play a significant role.GM was under immense pressure at the time from Donald Trump to close the plant, which once produced the Chevy Cruze. Steve Burns, founder of Lordstown Motors, reached a deal to license intellectual property from his former company, Workhorse EV startup, for an electric pickup truck. This truck was never produced. GM provided assistance and gave over equipment. Trump declared that the deal was GREAT NEWS for OHIOLordstown Motors was merged with a special purpose acquisition firm late last year and has since invested approximately $240 million in the factory to make the Endurance electric pickup truck. Workhorse had even considered using Lordstown Motors to manufacture the next-generation United States Postal Service mailtruck (before Oshkosh was awarded).Lordstown Motors was unable to keep its feet on the ground after Hindenburg Research published a report that Burns misled investors about the number of preorders the startup had received for the truck.Burns, along with several other employees and executives, has since resigned. The Securities and Exchange Commission and Department of Justice are investigating the startup. Lordstown Motors then reduced its initial production plans and stopped working on an electric van, which was to have been part of a partnership agreement with Camping World. Workhorse has sold 72 percent of its stake in Lordstown Motors.
