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LMC should explore new market plans

Steve Burns may have been the idea guy, but as CEO of the startup electric-truck maker Lordstown Motors Corp., he failed miserably.

The company’s board of directors last week announced it will pay Burns $750,000 to go away. Nevertheless, new company leaders say they remain hopeful about the company’s future. Indeed, the unique technology for the Endurance pickup truck, placing the motors into the truck’s four wheels as the only moving parts, still seems to have some promise.

Undoubtedly, the company will face an uphill battle as it overcomes the serious image problems stemming from allegations it misled investors and the public about the number of firm orders. It also must overcome some PR nightmares arising from things like an unfortunate fire during a February test drive of an Endurance prototype in Michigan and its failure to complete a Baja desert competition in the harshest of conditions.

Still, the company has not given up on efforts to explain these experimental performance issues, and is continuing to defend itself against words that were either misspoken or misinterpreted, especially regarding the number of advance orders.

In a regulatory filing last week with the U.S. Securities and Exchange Commission, the company disclosed it has no firm purchase commitments for the battery-powered pickup truck, but still believes there are indicators of significant demand for the Endurance.

Frankly, we believe there could be strong demand, but investors and potential buyers have shied away due to the ongoing comedy of errors involving statements made by company leaders to investors.

Many of those potential buyers who expressed a willingness to give the truck a try early on were right here in Ohio. We hope they still are willing, but given the new set of challenges, we propose a different approach.

Let’s face it, the Endurance will be hard-pressed to compete with new EV pickup trucks being developed by well-established manufacturers like Chevrolet and Ford. Therefore, a more manageable, less lofty marketing approach might be more logical for the startup company.

For instance, a more regional footprint might be advisable. Why not focus marketing efforts only on Ohio or nearby metropolitan areas like Pittsburgh or Buffalo?

The company might consider hiring trained service technicians and create a locally operated service center inside a portion of the sprawling LMC complex in Lordstown. Parts would be immediately accessible at the on-site manufacturing plant, and buyers could rest assured that maintenance and service would be easily within reach geographically.

Further, we propose selling these trucks not just for fleets, but to the public.

At the end of the day, the technology still seems promising, but it’s the marketing and sales that will need help. Indeed, both the challenges and the opportunities for the Endurance are numerous.

It’s true we are not experts in the automobile industry, but we do know that suggestions for different marketing approaches should be welcomed and explored in order for this startup company to find a path forward.

We, like everyone in the Mahoning Valley and Ohio, should be pulling for this company’s future. After all, success of LMC only can mean success for our region.

editorial@vindy.com

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