 Hi, this is MXUX, that's the MIH Model X. Don't know if that's gonna make it to America, but we're gonna try to explain MIH in just a few minutes here. Here's Jack Chang, he's the head of MIH. Let's move on to the presentation. Just a quick word about Jack Chang here. He's former Foxconn, and Foxconn is really in charge of all of this. So let's just move forward here. Now what we're talking about is a new chapter, the open and agnostic EV revolution. Jack explains in this presentation that the agnostic part means, it doesn't matter who's making the part. There's setting standards, company A can make it, company B can make it, every part's interchangeable, every company's interchangeable. Nobody's number one, everybody's part of the team. It's the team that wins. So they're setting up standards, and the member companies are gonna meet these specifications. And again, it means they don't have to rely on one specific supplier for motors, because it's agnostic. Okay, in this next section, this is really what they're trying to do. The PC and the smartphone have in common an open ecosystem, modular design, and common interfaces. This is really what they are trying to set up for the battery electric vehicle model that they are gonna pursue, and that is Foxconn, basically, and Lordstown, LMX and Foxconn together. They're looking to do exactly this. They're gonna build battery electric vehicles like personal computers and smartphones were built. You know, PCs, they had a standardized, the buses were all standardized, the connectors. Foxconn is Fox connectors. That's what Foxconn started doing. They were making connectors for hard drives to motherboards and so forth. But the idea is here in both PCs and smartphones, all the basic components are all commonized. They're all standardized. The connections are all standardized. The branding takes place with the design and the software and so forth. Now they also have Qualcomm down here. Qualcomm simply develops a specification and a design for a product and sends it off to China. All the parts are sourced, everything is a man. They have no manufacturing. All they do is design. And this is the Foxconn model as well. So what the goal of MIH is, and now it's 2,500 companies, is to standardize these hard drive connections, standardize the batteries, standardize everything about the car to leave it development basically up to branding and design. This is what they wanna do. This is the goal. Now this next section is a restatement of that. There's your MIH platform, which encapsulates a structural battery pack and castings by the way. It's open and it's agnostic. So it's open source. We've got all these companies providing components. It's agnostic. All the parts are interchangeable. And again, it's the PC and cell phone model or the Qualcomm router model if you will. And the idea here is enabling brands. Again, this common platform is branded to produce affordable EVs, fleet operators to easily manage their EV fleets because of the standardization and enabling mobility service providers to introduce innovative mobility at a service. In other words, produce low demand models specific to market niches. This is the goal of MIH. Now with this slide, I'm gonna start at the bottom first. See the Orgex? Those are the next two areas. They're gonna take MIH and Foxconn too, robotics and digital health. But at the moment, they're only doing EVs, which I have circled in red there. And then let's just start at the bottom here. Let's this line going left to right. EV, open source, agnostic. Okay, we've gone through these. Many suppliers, doesn't matter who it is. They're all building to the same standard. And these are the types of vehicles. They're talking about the second living space, on demand, shared mobility, a diverse courier and delivery services. The idea being this is gonna be a low cost platform that's gonna be able to be modified and branded to meet these different market segments and demands. Now in this circular area down below, these are the areas that MIH is working with. Smart cabin, autonomy, energy management, thermal management, body structure, power train, security and over the air and EEA. I don't know what that is. Electrical, anyway, the point is, in each of these topics, they have an operating group within MIH and a collection of companies that has agreed to work on these different areas. All of these areas are gonna intersect and be able to work together under the same set of connections and APIs and so forth. Just as you have all of the different components of a personal computer, all made by different manufacturers to different standards, they all fit together and it all works. This is what MIH is going to do for battery electric vehicles. So up at the top, they have increasing demand for BVs, acceptance of mobility as a service, which is your Uber and soon to be RoboTaxi and increasing demand for purpose-built vehicles. I think the endurance in its perfect form, in its form right now, is a specially built fleet vehicle. So this next section is what... Jack Chen said during this presentation that they've all been working together to put these standards together and they wanna have something to show for their work. This is Project X and this is business to business to consumer, open and agnostic EV platform. So this MIH platform, which has castings and a structural battery pack and I think probably hub motors or some type of hub motor is being used as the basis for this Project X and this model is basically set up now for distribution in Asia. I don't know if it will meet U.S. safety standards, but likely Lordstown Motors is involved in some way in the engineering of this vehicle setting up the specifications for this vehicle, I should say. And this is a very cool vehicle. It's a modular vehicle. It's gonna be ordered online like you can pick one from column A and this type of interior and this type of drivetrain and this color and so forth. It's gonna be very low cost. It's gonna be very customized. It's focused on initially a youth market. I have some video coming up on this, but this is the culmination of the MIH program. Putting together a group of suppliers that can produce a vehicle like this. Important moment now for me to announce is that MIH is no longer just becoming like a consultium. We need to do something differently to disrupt the industry, including as what Mr. Lu just say, build your own vehicle with the Project X. So this B2B to these approach is open agnostic. We will first have a three-seater and then we will do a six-seater and a nine-seater with a common platform so you can expand, including the battery pack, including the motors, including all the user experience that you're gonna be putting on to this platform. So how are we gonna do it? How can we do it? First thing first, if this is a three-seater and I can share with you this model that you look at outside, that's the first skeleton. We use our partner in Germany, FEV to develop the skeleton. And then we're putting the power chain solution, putting also all the MIH working group solution onto that platform. So if you compare this product with the other product in the marketplace, you might say, well, this is probably just another chinko channel via 500 or it's just another mini Cooper. No, it's not just like that. It includes a share tooling, the fender and also the quarter panel are actually the same, but it's just flip. And I can only produce one tool that I can do for two body panels. The lighting, the display, front and the rear, are somewhat symmetrical. So this will be shared as well. It will be just like a Lego and you can put it on and take it off. And it's very easy for maintenance and services. Getting exciting, right? You love it. I like it too, but the younger generation know and understand what Lego is all about. Not for us, probably at this age. Sorry, Sydney and Mark. So I would like to play a Project X review video first and then let you to get a few, please. Build your own vehicle with Project X. Modular design with standardized interfaces allows flexible architecture for every vehicle segment, enabling mobility service providers, fleet operators and mobility brands to customize vehicles based on their needs. With the plug and play design approach, innovative products can be introduced in less time and cost, fulfilling the needs of different audiences. This is Project X, a new chapter of the open and agnostic EV platform for the innovators by the innovators. Now you have the picture, right? The configuration, the body style, the shape, and I'm implying this vehicle is gonna be coming out. This is a historic moment that we wanna share with you. So bear with me, the demo days, the biggest role is to display our first MIH vehicle. And this is gonna be very exciting. Okay, I'm just going to speak over this video, these couple of video clips. I think this is a very cool car. I think if it can be engineered to meet US safety standards, I think it would be a hit. It reminds me of that box shaped car that was put out by Toyota a while back. But make no mistake, Foxconn is going to build this. This entire MIH effort is in support of Foxconn's CDMS, Contract Design Manufacturing Services. It'll be built by Foxconn, and there's a good chance that Lordstown Motors will be doing some or a lot of the engineering on this as well. I have another clip here. Let me just cue that up. They only want a thousand fashion vehicle, EV. They can come to me. I built it for them. And it's elastic. It's like a Lego. I can put it on and take it off easily. So this vehicle, if you like, it's got a very, very smart mind. It's young and dynamic. It's got a very strong heart. The powertrain is gonna provide by all partner here, and we will be doing something also, very, very lifestyle, including the display. We have our display, fingernails polish the color. Be my guest. Tell me. We changed for you. It's tailor made. And the last but not the least, this AR experience outside, everybody have a chance to take a picture. This was taken in Fastcom between young, Ms. our chairman, Yang Liu and myself. We did it virtually with this vehicle. It's cute, but it also can think and then make your life even more exciting. So with all this, I think that you will see a lot of things are going on and people started to ask me, finally you got a platform so we can put something on, right? Exciting? Yes? There are things more exciting. So we're gonna do three car, three-seater, six-seater and nine-seater. And the market, not only from Taiwan for three-seater, we're gonna go to Asia Pacific for the three-seaters market, including India, Thailand, Indonesia and Japan. So we got all the will here for our partner from Japan here include in addition to Denso and so on, we are actually going to all these market first. And 2024 we will build the demo car for the six-seater and then for the nine-seater. This is gonna be also share a platform, a very, very effective way of doing the industrialization and make sure that everybody have a chance put your solution down to this vehicle. So this is the Project X. Let us know your thoughts because every comments, comments, comments. Okay, this is MXUX. That was my presentation on the MIH program. And MIH is still a work in progress too, but you can see they're moving right along. I hope that gives you a conceptual idea of what MIH is. And I think it's important to note that MIH is an initiative of Foxconn and I'm repeating myself here. Part of their CDMS, Contract Manufacturing Design Services model of which Lordstown Motors is their key engineering partner at their world headquarters in Lordstown, Ohio and likely to pay a role in all of those efforts. I would have to follow here is a couple of pieces I put together as an update on the quality issue, the connector issue with the endurance and the recall. Take a listen to this. Hi, this is MXUX. We're just gonna do a quick update here on the Lordstown Motors quality issue. Oh, this is from AutoWeek. There's a shot of the endurance in production. That's really a great looking, look how that's engineered, how simple it is. Lordstown Motors halts production. Now, I think this is critical here. They were planning on assembling 500 units with current funding. Okay, this is before the full 170 million, however that's structured with Foxconn. So we've already had enough funding to do 500 units and we had this recall after 19 units. Experience, performance and quality issues with certain endurance components, that's plural. Now, you know, just speculation on my part, it sounds like a plug. We know that each hub motor has three connections. One's a power, one's a control and one's the cooling. They had mentioned it would halt power to the motor. I imagine it's these plugs. They one end of these plugs terminate at the hub motor. The other end of these plugs, these three different lines terminate at the battery, the controller and the thermal system. I don't think the thermal system is an issue, it could be, but with the loss of power, I think it would either be the control line or the power line. It amounts to 19 vehicles. Working with suppliers. So again, plural. The formal decision to issue a recall was made in light of a specific electrical connection and that could produce a loss of power while driving by deduction. That would be the power connection to the hub motor at one end or another. So I think they've discovered a, it sounds like they're working with suppliers. Perhaps the suppliers are not reaching tolerances on the molding of these connectors and so forth, but that would be my definition of the issue. That's about it for this report. I'm gonna go through the Lordstown statement as well. So it looks like they're working with suppliers so it doesn't appear to be a design problem with the endurance, certainly not a battery problem. It would be between the connectors of the hub motor of the either control line or the power line. I guess, I mean again, I'm not an engineer so I don't know, but certainly it implies a connection with the power line. And it sounds like somebody's not making things the tolerances and so they said they're gonna do a redesign of the component, which is one solution and then a redesign of the software to deal with this power outage. But the more I read about this and again, speculation on my part, you guys can do your own DD on this. It looks like the manufacturer were not making these connectors to a certain specification. So the redesign would make it an idiot-proof connection. And since they do make the hub motors and they can change this connection if need be or they can just change the design of the connector to work better. But I think the real good news here is they have funding to do 500 units. Of course, this is gonna break in the funding, not an ideal situation for the company or the stock. However, it is not the forward battery problem which is akin to the bolt battery problem in which GM had to replace every bolt battery and tell people to park their trucks outside. That may be coming with Ford. So we do not have that with the endurance. And again, this seems completely doable. I think they really used a large amount of caution with this because of the SEC, because of the DOJ, because of the shorts and so forth. So anyway, let's see what's gonna happen with the earnings call on this. Very curious, very curious to see how this worked with funding as well. Okay, this is the Lordstown Motors website. And this is their official release on this from the 23rd. Just gonna go over some critical things here in addition to that last piece. Endurance has experienced performance and quality issues with certain components. So that's a plural that have led the company to temporarily stop production and customer deliveries. So again, a multiple plural working with suppliers. So this has been noted as a supplier problem again as I stated previously or whenever that segment comes in before this or after this. So it's a supplier problem. So they're not saying it's a design problem. It sounds like the suppliers are not meeting the specifications that the Lordstown has set up for this particular item. And as I said previously, they've got let's say two electrical connections of one type or another that go into the hub motors and those connect on each end. And I think that these connectors could be the issue. I don't know, speculation on my part. May include part design modifications. So this implies redesigning or modifying the part from the supplier retrofits means replacing the existing let's say harnesses if that's the case. So redesigning the wires and connectors retrofitting retrofitting the finished 19 models and updating the software to deal with this power loss, which I'm sure has already, I'm sure Steve Burns, I mean, they had this set up so that the truck could run on one motor if needed. I guess this is something else that's gonna have to do with all four motors, perhaps enabling towing and stuff in this situation and so forth or whatever the case may be. So they have voluntarily did a recall, a specific electric connection, a specific electric connection. So that could result in a loss of propulsion while driving. So the recall there may have been multiple. So there are multiple of these lines with a connection on each end. The one that supplies the power is the one they issued the recall for. And Lordstown is working with the supplier network to implement corrective action that the company believes will address this issue. So it sounds like these connectors were not made to spec and I think they're gonna do an idiot proof redesign of the connectors. And I think that's gonna be the solution. There's a speculation on my part. Again, there's one connection on each end of these lines and these go to the hub motors. I am assuming that this is the problem does not sound like a major problem to me, although a critical component, but it's a math problem. They should be able to solve it. It didn't come through in testing. It appears because the units that were tested, the endurance units that were tested had connectors that were made to the proper specification. So it looks like when they ramped up the production of these connectors, they had quality control issues at the manufacturer and that in turn caused this problem with the endurance. This is what I deduce from all this. They're gonna resolve potential issues before resuming production and current shipments. So how long will this take? I don't know. They're gonna certainly be very careful about this. Will it take a quarter, a full quarter to do this and push production back? We're supposed to be starting production in March. Well, we've got another month. Let's say that High Tower had said Q2 of 23. We're gonna start ramping up full production and it was the 500 units. Before that, this is certainly gonna stall the 500 units. We don't know how many, they said 19 trucks total. So we've got 480 trucks to build in this batch and then start the ramp. Will it stop or pause production? So question, they're gonna have to redesign, test the redesign. Let's see, again, we're gonna have to see what happens during the earnings call and it's gonna be a critical earnings call. They had the funding to produce 500 units. This obviously is gonna cost some money but it sounds like the suppliers are gonna bear the brunt of that but the engineering staff is gonna have to devote time to this at Lordstown. There's gonna have to be testing of the new units and so forth. Unless this is a very clear cut problem where they use the wrong molding die to make these and that type of thing. But anyway, we're gonna have to listen very closely to High Tower. I don't know, I have a Model X video coming out, the MAH model. I'm sure that Lordstown is playing some role in the engineering of this Model X. It appears to me that Model X is gonna use hub motors and it's important to note that Lordstown Motors has the IP for hub motors. They specifically mentioned it in the last agreement with Voxcon that they were not gonna sell that or license it out. And in fact, Voxcon is running the production line of the hub motors at the Lordstown facility, although Lordstown Motors owns it. So this is all very critical to Vox. It implies to me that this Model X and the MAH platform is going to employ hub motors. And likely since the Lordstown Motors is the member of the MAH platform, the control IP from Lordstown Motors is gonna be used to control those hub motors. That would be my speculation. Anyway, that's the update. So we're gonna just have to sit on tender hooks here. We don't have much longer to wait and see what High Tower and Neovage say about this, how they handle this. And we're gonna need to know time frames. Of course, funding is always an issue with Lordstown Motors. Again, Ford is coming up on a month. On the seventh, it will be one month that their production has been halted. They have traced their problem to the battery manufacturer SK in Alabama, I believe that's right. And they're using these Prismatic or these pouch batteries. The Endurance uses the same battery cells as the Model 3, Tesla. These pouch batteries, they are problems. This is what caused, again, I'm repeating myself, the Bolt Recall. They have to be packaged in heavy metal boxes, which, and then these boxes are stacked into a battery pack. It creates a lot more weight. And because of the nature of it all, it's very easy to have one of these tabs that connect these batteries together, twist and so forth. And I think that's what's happened at Ford. I think Ford may be looking at a recall. I don't know of their other models. I don't know how they can say that none of these other models have this error when all the batteries came from the same manufacturer. I mean, it's very akin to the Jam Bolt Recall. And I think it's gonna have the same outlook. I think there's, the 20,000 vehicles they have on, I think they're gonna be recalled and I think their battery pack's gonna be replaced. And if I were a fleet manager, rather have a plug go bad than a battery go bad, but you don't want anything to go bad. You want 9996-9's reliability on that stuff. Let's see how a Neovagy and Hightower handle this. Both of them are pros. Neovagy, of course, is a pro with the automotive parts supply business and Hightower, of course, is a pro with the auto industry. And as I said, I don't know if they're gonna bring in the guy they hired who is a top end quality control guy who I suspect got all this together. But let's see how they do. No problems are the best problems, relatively speaking. This is a lesser problem than Ford is facing.