Lordstown Motors files lawsuit against Hon Hai
US based commercial electric vehicle startup Lordstown Motors is suing Hon Hai for its failure to follow through with a US$170 million investment in the company.
The move comes after the Ohio company filed for Chapter 11 bankruptcy protection. It warned two months ago that it was in danger of failing.
According to Lordstown, it is filing a lawsuit against Hon Hai Technology Group and certain affiliates, including Foxconn, charging them with fraud and wilful and consistent failure to live up to its commercial and financial commitments to the company.
The lawsuit claims that Hon Hai's actions led to material damage to Lordstown and its future prospects.
Hon Hai paid US$230 million to buy Lordstown's Ohio factory from the automaker in May of last year - saying it planned to make the Ohio plant its first electric vehicle manufacturing hub in the US market.