Workhorse has struggled for a number of years to get market traction for its electrical industrial vans. The corporate’s C-1000, designed for so-called “final mile” supply service and launched in 2020, was recalled final 12 months after CEO Rick Dauch ordered a redesign.
The corporate now plans to discontinue the mannequin after utilizing up its current elements inventories.
Workhorse reported a internet lack of $156.1 million for the fourth quarter of 2021. That was a pointy decline from the $280.5 million internet revenue it reported a 12 months prior, when it recorded a $322 million achieve on its stake in one other EV startup, Lordstown Motors.
Workhorse offered its stake in Lordstown through the third quarter.
Since becoming a member of Workhorse in July of final 12 months, Dauch has employed a brand new senior management crew, opened a brand new technical middle in Michigan and revamped the corporate’s product plan.
However it could be some time earlier than traders see tangible outcomes from these efforts.
The brand new product plan hinges on two new electrical industrial automobile platforms, the primary of which will not start manufacturing till the third quarter of 2023, the corporate mentioned on Tuesday.
Within the meantime, Workhorse will construct one other new electrical industrial van primarily based on chassis equipped by a Canadian rival, GreenPower Motor.
Beneath a deal announced on Tuesday morning, GreenPower will provide 1,500 EV chassis to Workhorse over 21 months starting in July. Workhorse will construct its new vans on these chassis, with the primary of the brand new vans anticipated to ship by the tip of September.
“Our outlook for 2022 displays our deliberate progressive ramp in manufacturing, which is backloaded, as we’re not anticipating to supply any automobiles within the first half of the 12 months,” Chief Monetary Officer Bob Ginnan mentioned on Tuesday.
These new vans, plus the final of the C-1000s, ought to generate not less than $25 million in income in 2022, Ginnan mentioned.
Workhorse had about $201.6 million in money available as of December 31, 2021.