Lordstown Motors has hired Daniel A. Ninivaggi, a longtime automotive executive and former head of Carl C. Icahn’s holding firm, as CEO and a board member. The appointment follows months of tumult at Lordstown, which grew to turn into publicly traded through a merger with a obvious motive acquisition firm.
In June, founder and CEO Steve Burns and CFO Julio Rodriguez resigned following a disappointing first-quarter earnings that published the firm was consuming extra capital than expected and unable to reach beforehand forecasted production numbers for its electrical Persistence pickup truck. The resignations were also tied to a board committee investigation that found inaccuracies in one of the principal firm’s disclosures on its truck preorders.
The resignations were accurate one of several considerations, including allegations of fraud and separate investigations by the Department of Justice and the SEC, that has put the two-12 months-veteran firm prone to failing. Lordstown did get a lifeline in August when hedge fund YA II PN purchased 35.1 million shares, or about 19.9% of famed shares. The sale equipped unparalleled-wanted capital required to compose its first electrical automobile on the former GM Assembly Plant in Lordstown, Ohio.
Ninivaggi has the background to bring characterize to Lordstown’s industry. He can even be bullish on the firm’s product, noting in a assertion that the request for fats-measurement electrical pickup trucks will most definitely be strong and that Lordstown’s Persistence truck has the opportunity to take a well-known fraction of the market.
The former CEO of Icahn Enterprises has served in a differ of senior leadership positions in the automotive and transportation industries, initiating at Lear Corporation, the set aside he sooner or later grew to turn into executive vice chairman. He was later co-chairman and co-CEO of automotive components vendor Federal Rich person Holdings Corporation earlier than its sale to Tenneco.
While with Icahn Enterprises, Ninivaggi also oversaw the firm’s automotive aftermarket carrier network and components distribution businesses. He also has a long history directing public companies, including Motorola Mobility (prior to its sale to Google), Navistar International, Hertz International Holdings and CVR Power.