New Delhi:- An electric car startup that was supposed to save an Ohio town from sinking has gone bankrupt. Lordstown Motors, maker of the Endurance electric pickup truck powered by wheel hub motors, filed for bankruptcy yesterday. The company is also suing its largest shareholder, Taiwanese manufacturer Foxconn, for failing to make a promised investment.

But just four years ago it was thought that Lordstown Motors would become Gotham City's Batman. Rosetown, Ohio. In 2019, the company acquired the recently closed GM plant, which was once Lordstown's largest employer. 

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The facility would be repurposed for production of the Endurance, which Rosetown hoped would become the first electric pickup truck to beat out competitors such as Rivian's R1T and Ford's F-150 Lightning. The Trump administration has hailed the deal as a major victory for a city that believed the days of car manufacturing were over, and the former president even showed off a pickup truck at the White House. 

However, after going public through SPAC in 2020, Lordstown has been in the doldrums. One of its test vehicles spontaneously caught fire, and the company produced just 31 trucks earlier this year, some of which were recalled. 

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Lordstown Motors sold its car plant to Foxconn last year for $230 million, and the plant is set to start producing electric vehicles for another startup, Fisker, in 2025. Lordstown said it will go ahead with a restructuring process that will include an auction of assets, including rights to the Endurance EV platform. Lordstown began shipping the first batch of 500 Endurance EV pickups last November. In 2021, Burns resigned following allegations that he lied about pre-ordering trucks.

Meanwhile, the Securities and Exchange Commission launched an investigation into Rosetown for allegedly misleading investors, followed by an investigation by the Justice Department. Rosetown warned in May that the company risks filing for bankruptcy if its deal with Foxconn fails. 

Despite all efforts and a serious commitment to partnerships, Foxconn has deliberately and repeatedly failed to execute its agreed-upon strategy and has failed to maximize the value of Lordstown's assets for the benefit of its stakeholders. We're leaving Chapter 11 as the only viable option," said Hightower. Lordstown CEO and President said in a press release. "Accordingly, we will vigorously pursue the allegations against Foxconn." 

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Nordstrom sued the company Foxconn for not being prompt in their decisions the company is now on the way to bankruptcy and also the business it started can get winded up if continued like this.