Lordstown Motors Appoints New CEO to Revive EV Truck Plans

Lordstown Motors Appoints New CEO

Lordstown Motors has announced the appointment of Daniel A. Ninivaggi as its new Chief Executive Officer and a member of the Board of Directors. Mr. Ninivaggi brings extensive experience in the automotive sector, previously serving as a leader within Carl C. Icahn’s investment firm.

Recent Challenges at Lordstown Motors

This leadership change occurs after a period of significant challenges for Lordstown Motors. The company transitioned to a publicly traded entity through a merger with a special purpose acquisition company (SPAC).

In June, both founder Steve Burns and CFO Julio Rodriguez stepped down from their positions. This followed a first-quarter earnings report that indicated higher-than-anticipated capital consumption and difficulties in meeting initial production targets for the Endurance electric pickup truck.

Investigations and Financial Support

The departures were also linked to a board investigation that uncovered discrepancies in the company’s reported preorder numbers for the truck. These issues contributed to a broader set of concerns.

Allegations of fraud, along with investigations initiated by the Department of Justice and the Securities and Exchange Commission (SEC), placed the two-year-old company’s future in jeopardy. However, a crucial investment arrived in August.

Hedge fund YA II PN acquired 35.1 million shares, representing approximately 19.9% of the company’s outstanding stock. This capital injection was vital for initiating production of the first electric vehicle at the former General Motors Assembly Plant located in Lordstown, Ohio.

Ninivaggi’s Experience and Outlook

Daniel Ninivaggi possesses a strong background well-suited to stabilizing Lordstown Motors’ operations. He has expressed optimism regarding the company’s core product.

He believes there will be substantial demand for full-size electric pickup trucks, and anticipates the Endurance truck will be able to secure a considerable portion of the market.

Prior Roles and Leadership Positions

Before joining Lordstown Motors, Ninivaggi served as CEO of Icahn Enterprises. His career includes a series of prominent leadership roles within the automotive and transportation industries.

He began his career at Lear Corporation, eventually rising to the position of Executive Vice President. Subsequently, he held the roles of Co-Chairman and Co-CEO at Federal Mogul Holdings Corporation, leading up to its acquisition by Tenneco.

During his tenure with Icahn Enterprises, Ninivaggi oversaw the company’s automotive aftermarket service network and its parts distribution operations. He also has considerable experience in guiding publicly traded companies.

These companies include Motorola Mobility (before its sale to Google), Navistar International, Hertz Global Holdings, and CVR Energy.