Workhorse swings to quarterly loss on recalls, outlines new product plan

Workhorse C-Series

Courtesy: Workhorse

Battling electrical automobile start out-up Workhorse Team expects to develop approximately 250 motor vehicles in 2022 after completing a product or service-roadmap overhaul, the enterprise mentioned Tuesday.  

Workhorse has struggled for a number of years to get current market traction for its electric professional vans. The firm’s C-1000, developed for so-identified as “final mile” shipping services and released in 2020, was recalled past year just after CEO Rick Dauch ordered a redesign. 

The firm now plans to discontinue the model right after using up its present pieces inventories. 

Workhorse described a internet reduction of $156.1 million for the fourth quarter of 2021. That was a sharp drop from the $280.5 million web profit it reported a yr prior, when it recorded a $322 million acquire on its stake in another EV startup, Lordstown Motors.

Workhorse marketed its stake in Lordstown all through the third quarter.

Since joining Workhorse in July of previous year, Dauch has employed a new senior management workforce, opened a new complex middle in Michigan and revamped the company’s item strategy. 

But it may be a even though before traders see tangible success from individuals efforts. 

The new merchandise strategy hinges on two new electric powered industrial motor vehicle platforms, the to start with of which will not likely get started output until finally the third quarter of 2023, the firm claimed on Tuesday.

In the meantime, Workhorse will establish another new electric powered business van based mostly on chassis provided by a Canadian rival, GreenPower Motor. 

Beneath a offer introduced on Tuesday morning, GreenPower will source 1,500 EV chassis to Workhorse more than 21 months commencing in July. Workhorse will establish its new vans on all those chassis, with the to start with of the new vans expected to ship by the close of September. 

“Our outlook for 2022 demonstrates our prepared progressive ramp in production, which is backloaded, as we are not anticipating to make any autos in the very first 50 % of the yr,” Chief Money Officer Bob Ginnan claimed on Tuesday.

All those new vans, in addition the final of the C-1000s, must deliver at the very least $25 million in income in 2022, Ginnan explained. 

Workhorse experienced about $201.6 million in hard cash on hand as of Dec. 31, 2021.