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(Reuters) – Lordstown Motors Corp appointed Daniel Ninivaggi as CEO on Thursday, handing the reins of the electric truck maker to former investor employee Carl Icahn at a time when he faces intense regulatory scrutiny and production challenges.
The company’s shares jumped more than 6% in pre-market trading after the announcement.
Company founder and largest shareholder Steve Burns resigned as chief executive in June following the findings of the board of directors of an internal investigation into allegations by short seller Hindenburg Research.
The company, which previously warned it needed to raise additional funds, hires industry veteran Ninivaggi, who also oversaw the automotive after-sales service network and parts distribution business of Icahn Enterprises. .
Ninivaggi, who is president of auto parts maker Garrett Motion Inc, has also served as a director of companies such as Motorola Mobility, Navistar International and Hertz Global Holdings.
Last month, Lordstown said that a hedge fund had pledged to buy up to $ 400 million in the startup’s stock over a three-year period. Executives said the company is exploring other financing options, including debt.
Lordstown, which hung the ‘open for business’ sign on its northeast Ohio plant earlier this month, has struggled with the launch of its Endurance pickup truck.
Lordstown remains under scrutiny by federal prosecutors in Manhattan and officials of the United States Securities and Exchange Commission regarding its merger with a Special Purpose Acquisition Company (SPAC) and the statements that she had previously made regarding pre-orders of her vehicles.
(Reporting by Subrat Patnaik and Akanksha Rana in Bengaluru; editing by Rashmi Aich)
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