Focused on Advancing Product Roadmap for W4 CC, W750, and W56 Vehicles and Will Discontinue the C1000 Program
CINCINNATI – Workhorse Group Inc., an American technology company, focused on pioneering the transition to zero-emission commercial vehicles, today provided a business update as the Company looks ahead to 2023:
- Workhorse is discontinuing the C1000 program immediately as it focuses on advancing its product roadmap for the W4 CC, W750, and W56 vehicles. After a thorough engineering review, durability testing, and careful consideration, the Company determined that the increasing time, cost, and resources being devoted to the C1000 are better allocated to developing and producing its other vehicles and products. As a result, the Company expects to record a non-cash inventory write-off of approximately $10 million plus disposal costs.
- The Company received notice from the Securities and Exchange Commission (“SEC”) that the previously disclosed investigation of the Company has concluded, and the SEC does not intend to recommend any enforcement action against the Company at this time.
- The W4 CC vehicles that were previously delayed in ports are now beginning to be shipped to Workhorse facilities. The Company is working expeditiously to deliver the vehicles to customers.
“We are pleased to conclude 2022 with legacy issues behind us and are looking ahead to 2023 fully focused on executing our commercial vehicle product roadmaps and advancing our Aero and Stables & Stalls businesses,” said the Company’s CEO Rick Dauch. “We are on track with our plans to ramp up production and deliveries across our W4 CC, W750 and W56 in 2023 and beyond. The conversations we’ve had with customers over the last several weeks have reinforced that demand for our vehicles is strong. We remain confident in our ability to win in the EV market and create value for our customers, our communities and our shareholders.”
The Company reaffirmed its revised guidance range for 2022, which includes manufacturing and delivering approximately 25-100 vehicles and generating between $5 million and $15 million in revenue. The Company also expects to generate significant revenue growth in 2023 as it ramps up the production of its products.
