Shulou(Shulou.com)11/24 Report--

CTOnews.com June 27 news, according to Reuters reported that after nearly a month of saliva war, Hon Hai's electric vehicle partner Lordstown Automobile in the United States has been overwhelmed by losses and filed for bankruptcy protection.

▲ Source: Lordstown, the same below reported that Lordstown filed a bankruptcy protection order with Delaware Chancery Court today in accordance with Chapter 11 of the U.S. Bankruptcy Law. CTOnews.com notes that Lordstown has a staggering amount of debt, Reuters quoted people familiar with the matter as saying that its outstanding debt is between $100 million and $500 million (currently about 724 million to 3.62 billion yuan)

Lordstown signed an OEM agreement with Hon Hai last year, making it Hon Hai's first commercial vehicle OEM customer. In addition, Hon Hai and its affiliates invested a total of US $277.7 million (currently approximately RMB 2.011 billion) in Lordstown to assist in its mass production of Endurance electric pickup trucks. However, Hon Hai suspended its investment in Lordstown after the company's first 500 electric pickup trucks were delivered into a quality storm and stopped production, triggering a war of words between the two companies.

Lordstown's closing price yesterday plunged 7.2 per cent to $2.765 (currently about rmb 20), with a market capitalisation of just $44.06 million (currently about rmb 319m), according to reports, setting an all-time low for the company's share price.

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