Lordstown Motors has hired Daniel A. Ninivaggi, a longtime automotive executive and former head of Carl C. Icahn's holding company, as CEO and a board member. The appointment follows months of tumult at Lordstown, which became publicly traded via a merger with a special purpose acquisition company.
In June, founder and CEO Steve Burns and CFO Julio Rodriguez resigned following a disappointing first-quarter earnings that revealed the company was consuming more capital than expected and unable to reach previously forecasted production numbers for its electric Endurance pickup truck. The resignations were also tied to a board committee investigation that found inaccuracies in some of the company's disclosures on its truck preorders.
The resignations were just one of several problems, including allegations of fraud and separate investigations by the Department of Justice and the SEC, that has put the two-year-old company at risk of failing. Lordstown did receive a lifeline in August when hedge fund YA II PN purchased 35.1 million shares, or about 19.9% of outstanding shares. The sale provided much-needed capital required to produce its first electric vehicle at the former GM Assembly Plant in Lordstown, Ohio.
Ninivaggi has the background to bring order to Lordstown's business. He is also bullish on the company's product, noting in a statement that the demand for full-size electric pickup trucks will be strong and that Lordstown's Endurance truck has the opportunity to capture a meaningful share of the market.
The former CEO of Icahn Enterprises has served in a variety of senior leadership positions in the automotive and transportation industries, beginning at Lear Corporation, where he eventually became executive vice president. He was later co-chairman and co-CEO of automotive components supplier Federal Mogul Holdings Corporation ahead of its sale to Tenneco.
While with Icahn Enterprises, Ninivaggi also oversaw the company's automotive aftermarket service network and parts distribution businesses. He also has a long history directing public companies, including Motorola Mobility (prior to its sale to Google), Navistar International, Hertz Global Holdings and CVR Energy.