Workhorse Group Provides Update on Review of Operating and Commercialization Plans
September 22, 2021 at 08:45 AM EDT
Remains on Track to Provide Long Term Strategic Roadmap on Q3 Earnings Call
CINCINNATI, Sept. 22, 2021 (GLOBE NEWSWIRE) -- 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.
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