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Thu. 26 Aug 2021, 8:57am ETBenzinga
In: News, Small Cap, Management, Top Stories, Movers, Trading Ideas

A former SPAC that has been beaten down from a change in leadership, questions on orders and short reports named a new CEO Thursday morning to help steer the company forward.

What Happened: Daniel A. Ninivaggi was named the new CEO and a member of the board of directors of Lordstown Motors Corporation (NASDAQ:RIDE).

Ninivaggi previously served as the CEO of Icahn Enterprises L.P. (NASDAQ:IEP), the holding company led by Carl Icahn. Ninivaggi began his automotive career at Lear Corporation (NYSE:LEA) where he was responsible for corporate development and strategy.

Ninivaggi also served as the co-chairman and co-CEO of Federal Mogul Holdings Corp., a powertrain, chassis, sealing, brake and auto components company.

At Icahn Enterprises, Ninivaggi also led the automotive aftermarket service network and parts distribution business.

Outside of automotive industry leadership, Ninivaggi was a director with companies that include Motorola Mobility, Navistar International, Hertz Global Holdings and CVR Energy. Ninivaggi serves as the chairman of the board of directors of Garret Motion (NASDAQ:GTX).

“I believe the demand for full-size electric pickup trucks will be strong and the Endurance truck, with its innovative wheel hub motor design, has the opportunity to capture a meaningful share of the market,” Ninivaggi said.

Related Link: Lordstown Motors Shares Fall On Lowered Unit Guidance, Need For Capital

Why It’s Important: Lordstown Motors continues to push forward on producing its electric pickup truck, the Endurance.

The company said this year that it would need more capital to start production and get vehicles on the road.

“With an absolute focus on execution, I look forward to working with the talented Lordstown management team, our suppliers and other partners to bring the Endurance to market and maximize the value of our assets,” Ninivaggi said.

The board highlighted Ninivaggi’s experience in the automotive market and also his “capital markets expertise.”

Former Lordstown CEO Steve Burns and CFO Julio Rodriguez stepped down from the company in June.

RIDE Price Action: RIDE shares were trading 20.51% higher premarket Thursday at $6.64. 

Photo courtesy of Lordstown Motors.