Lordstown's New CEO Has an Uphill Battle to Fight
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Ohio-based EV startup Lordstown is slowly pulling itself out of the mud this summer after a disastrous first half of the year. The company chose a new CEO to replace its former president, who resigned in June.
Daniel Ninivaggi will succeed Steve Burns, who was ousted from the automaker’s leadership after making inaccurate statements concerning pre-orders. Earlier in the year, Lordstown President Rich Schmidt and four other executives sold off over $8 million in the company’s stock shortly before a bleak first-quarter earnings report.
The resulting mess is still under federal investigation, but the company is pushing forward thanks to a recent influx of cash from a hedge fund managed out of New Jersey. New leadership and financial backing could allow the electric truck builder to bring its first pickup, the Endurance, to market.
Daniel Ninivaggi is tasked with saving Lordstown Motors.
Who is Daniel Ninivaggi?
After all the drama of the last six months, Lordstown is looking for stability. Hagerty says their new leader, Daniel Ninivaggi brings that and more to the business, thanks to nearly two decades of experience in the automotive industry.
Before joining Lordstown, Ninivaggi served as a board member or CEO for all kinds of other companies within the industry, from car rental juggernaut Hertz to turbo-charged transportation innovator Garrett.
Despite his wealth of experience, he has a deep hole to climb out of. With the former leadership still under federal investigation, it will take a lot to convince investors and consumers that Lordstown is worthy of their trust and hard-earned dollars.
How does Lordstown stack up against its rivals?
Even without the year’s potentially shady dealings and executive turnover, Lordstown is up against some substantial competition.
Other EV makers are set to begin selling their electric pickups within the next year, from fellow startup Rivian and EV leader Tesla to auto industry mainstays like GMC and Ram. Even Ford has thrown its hat in the ring with an electrified version of its best-selling F-150.
It will take some impressive product performance and marketing to convince buyers to choose a Lordstown Endurance over these brands, never mind the broken trust the company will have to reestablish.
Steps to pre-ordering a vehicle
Despite all the noise surrounding electric pickups, most models have yet to hit the pavement. But that doesn’t have to stop you from making a decision. All the previously noted brands are taking pre-orders.
Before you choose a model though, you should do your homework. Contrast and compare all the available models for their performance, battery charge range, and price, and look into expected car insurance prices before clicking or signing anything.
Have a question about your coverage? Jerry’s friendly agents are here to answer your questions and provide advice on the best coverage options. As your life changes, your insurance changes, and Jerry is ready to make those adjustments for you.