Workhorse Group Provides Update on Review of Operating and Commercialization Plans
September 22 2021 - 7:45AM
Workhorse Group Inc. (Nasdaq:
WKHS) (“Workhorse” or
“the Company”), an American technology company focused on
providing sustainable and cost-effective drone-integrated electric
vehicles to the last-mile delivery sector, today provided an update
to its ongoing review of the Company’s business and go-forward
operating and commercial plans to transition from an advanced
technology start-up to an efficient manufacturing company.
The Company has identified a number of
enhancements in the production process and design of the C-1000 to
address customer feedback, primarily related to vehicle dynamics to
increase the vehicles’ payload capacity. As Workhorse has
identified these enhancements and continued its review and redesign
of the C-1000, the Company has decided to suspend deliveries of
C-1000 vehicles and recall 41 vehicles it has already delivered. As
part of these efforts, the new leadership team has determined that
additional testing and modifications to existing vehicles are
required to certify the C-1000 vehicles under Federal Motor Vehicle
Safety Standards (FMVSS).
The Company expects to complete testing in the
fourth quarter of 2021. Workhorse intends to provide an update on
its operating and commercial plans on its upcoming third quarter
2021 earnings call.
“Our new leadership team is taking decisive and
necessary actions as we conduct our comprehensive operational
review of the business,” said Workhorse CEO Rick Dauch. “We have
identified a number of opportunities to improve our C-1000 series
vehicles and are committed to getting these previously delivered
vehicles back on the road. Importantly, we remain on track to
communicate our new, long-term strategic roadmap to enhance our
trucks and operational capabilities on our third quarter earnings
call. We continue to be confident in our ability to be a leading
manufacturer of last-mile delivery vehicles over the long
term.”
The Company has filed a report with the National
Highway Traffic Safety Administration (NHTSA) regarding the need
for additional testing and vehicle modifications to certify its
C-1000 vehicles under FMVSS, and intends to fully coordinate with
NHTSA. The Company has not received any customer reports of safety
issues related to this matter in any of the C-1000 vehicles
previously delivered by Workhorse.
Additional details will be available in the
Company’s filing with NHTSA. Accordingly, the Company’s previous
statements related to the C-1000’s compliance with NHTSA standards
cannot be relied upon and the Company has so notified the
Securities and Exchange Commission.
About Workhorse Group
Inc.Workhorse is a technology company focused on providing
drone-integrated electric vehicles to the last-mile delivery
sector. As an American original equipment manufacturer, we design
and build high performance, battery-electric vehicles including
trucks and aircraft. Workhorse also develops cloud-based, real-time
telematics performance monitoring systems that are fully integrated
with our vehicles and enable fleet operators to optimize energy and
route efficiency. All Workhorse vehicles are designed to make the
movement of people and goods more efficient and less harmful to the
environment. For additional information visit workhorse.com.
Forward-Looking StatementsThis
press release includes forward-looking statements. These statements
are made under the "safe harbor" provisions of the U.S. Private
Securities Litigation Reform Act of 1995. These statements may be
identified by words such as “plan,” “ongoing,” "expects,"
"intends," “on track”, “will”, “long term,” "continue," or the
negative of such terms, or other comparable terminology.
Forward-looking statements are statements that are not historical
facts. Such forward-looking statements are subject to risks and
uncertainties, which could cause actual results to differ
materially from the forward-looking statements contained herein.
Factors that could cause actual results to differ materially
include, but are not limited to: our ability to successfully
complete the additional testing and implement required
modifications to vehicles to achieve FMVSS certification with
respect to the C-1000s; the results of our ongoing review of the
Company’s business and go-forward operating and commercial plans;
our ability to capitalize on opportunities to deliver products to
meet customer requirements; our limited operations and need to
expand to fulfill product orders; risks associated with obtaining
orders and executing upon such orders; the ability to protect our
intellectual property; negative impacts stemming from the
continuing COVID-19 pandemic; the potential lack of market
acceptance of our products; potential competition; our inability to
retain key members of our management team; our inability to raise
additional capital to fund our operations and business plan; our
inability to satisfy covenants in our financing agreements; our
inability to maintain our listing of our securities on the Nasdaq
Capital Market; our inability to satisfy our customer warranty
claims; the outcome of any regulatory proceedings; our
liquidity and other risks and uncertainties and other factors
discussed from time to time in our filings with the Securities and
Exchange Commission ("SEC"), including our annual report on Form
10-K filed with the SEC. Workhorse expressly disclaims any
obligation to publicly update any forward-looking statements
contained herein, whether as a result of new information, future
events or otherwise, except as required by law.
Media Contact:
Aaron Palash / Greg KlassenJoele Frank,
Wilkinson Brimmer Katcher212-355-4449
Investor Relations Contact:
Matt Glover and Tom ColtonGateway Investor
Relations949-574-3860WKHS@gatewayir.com
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