Workhorse Group Inc. provided a business update as the company looks ahead to 2023. One of the top takeaways from their update is that the company is discontinuing the C1000 program, effective immediately, as it fully focuses its resources on advancing its product roadmap for the W4 CC, W750, and W56 vehicles.
According to a company statement, after thorough engineering review, durability testing, and careful consideration, Workhorse determined the increasing time, cost, and resources being devoted to the C1000 are better allocated on the development and production of 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.
In addition, Workhorse 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.
Workhorse continued to note that the W4 CC vehicles, previously delayed in ports, are now beginning to be shipped to Workhorse facilities. The company shared that it 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 continues to expect to generate significant revenue growth in 2023, as it ramps up production of its products.
Back in November 2020, Workhorse announced the order of 500 C1000 EV delivery trucks to be distributed through Pritchard Companies' dealership locations across the country. Two months prior, Ryder announced it would offer the C-Series Workhorse all-electric step van through the company's ChoiceLease and SelectCare product lines.
