Sen. Sherrod Brown seeks reform at LMC

Senator also criticizes electric-truck maker for not utilizing UAW

LORDSTOWN -- Troubled by reports Lordstown Motors Corp. is at the center of two federal probes, U.S. Sen. Sherrod Brown has asked the electric-vehicle startup to prove it can deliver on promises it has made.

The Democrat in a letter to newly appointed Lordstown Motors CEO Angela Strand asks the company to create and share a detailed plan for the company's reform, and to work with area labor unions that have "historic expertise" in making automobiles.

Earlier this month, the Wall Street Journal reported the company is being investigated by the U.S. Department of Justice. The probe, being done by the U.S. Attorney's Office in Manhattan, is in the early stages, according to the paper.

Lordstown Motors also is being looked at by the U.S. Securities and Exchange Commission. That probe, which the company disclosed was opened in February, is related to it becoming publicly traded and to preorders for its vehicle, the Endurance, limited production of which is supposed to begin in September.

"The Valley has seen too many companies make big promises and never follow through. Your board and your predecessor, Steve Burns, made those promises, and now the company needs to fulfill that vision of job creation and manufacturing innovation -- Lordstown Motors owes the Valley the next-generation electric future it was promised," Brown wrote Tuesday.

"To that end, I ask that you develop, and share with me, a detailed plan on how you intend to reform your corporate practices to provide greater transparency for workers, investors and the community by the end of the month."

He's also asking that part of the reform includes "taking a different approach to organized labor than in recent months," stating his concern over reports the company has not responded to a request to meet with United Auto Workers.

Brown wrote that UAW Vice President Cindy Estrada had written Strand on June 15 about a meeting.

"Failing to engage with a labor union with historic expertise in automotive manufacturing is a missed opportunity. UAW workers have so much to offer Lordstown Motors, particularly given your expressed desire to market your electric vehicles to American workers. UAW workers know Lordstown -- they helped the plant achieve General Motors' highest quality metric," Brown wrote.

An email was sent Tuesday seeking comment from Lordstown Motors.

The company also has found itself at the center of a scathing short-sellers report that resulted in several lawsuits, questions over whether it can stay in business and on the defensive over reports that several top executives sold millions in stock weeks before the company announced poor financial results in March.

In June, company founder and CEO Burns and chief financial officer Julio Rodriguez resigned without explanation. That same day a committee formed to look into the allegations made in the short-sellers report responded, reporting it found the claims mostly were false and misleading, but substantiated issues regarding some inaccurate statements about the Endurance.

The committee also explained the stock sales by company officials were made for reasons unrelated to the performance of the company or truck.