Workhorse moves to quarterly loss on recalls, outlines new product plan

C Series Draft Horse

Courtesy of Workhorse

Struggling electric vehicle startup Workhorse Group plans to build about 250 vehicles in 2022 after completing a product roadmap overhaul, the company said Tuesday.

Workhorse has struggled for several years to gain market traction for its electric commercial vans. The company’s C-1000, designed for so-called last-mile delivery service and launched in 2020, was recalled last year after CEO Rick Dauch ordered a redesign.

The company now plans to discontinue the model after running out of existing parts inventory.

Workhorse posted a net loss of $156.1 million for the fourth quarter of 2021. This is a sharp drop from the $280.5 million net profit it reported the year before. , when it posted a $322 million gain on its stake in fellow electric vehicle startup, Lordstown Motors.

Workhorse sold its stake in Lordstown during the third quarter.

Since joining Workhorse in July of last year, Dauch has hired a new management team, opened a new technical center in Michigan and revamped the company’s product plan.

But it may take some time before investors see tangible results from these efforts.

The new product plan revolves around two new electric utility vehicle platforms, the first of which won’t begin production until the third quarter of 2023, the company said Tuesday.

Meanwhile, Workhorse will build another new electric commercial van based on a chassis supplied by Canadian competitor, GreenPower Motor.

Under a deal announced Tuesday morning, GreenPower will supply 1,500 EV chassis to Workhorse over 21 months starting in July. Workhorse will build its new pickups on these chassis, with the first of the new pickups expected to ship by the end of September.

“Our outlook for 2022 reflects our planned gradual ramp up in manufacturing, which is delayed as we do not expect to produce vehicles in the first half,” Chief Financial Officer Bob Ginnan said Tuesday.

These new pickups, along with the last of the C-1000s, are expected to generate at least $25 million in revenue in 2022, Ginnan said.

Workhorse had approximately $201.6 million in cash as of December 31, 2021.

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