Lordstown plant, land sale sealed | News, Sports, Jobs
LORDSTOWN – Foxconn now owns the 6.2 million square foot automotive assembly plant in Lordstown, where the Taiwan-based global electronics and technology giant intends to mass-produce vehicles electrical.
Foxconn EV Property Development LLC, a subsidiary of Cleveland-based Foxconn, acquired the buildings and the 599 acres they sit on for $78.5 million from electric vehicle startup Lordstown Motors Corp., according to the office of the Trumbull County Auditor.
It was May 11 when Lordstown Motors announced it had finalized a $230 million asset purchase deal with Foxconn for the massive facility where General Motors had produced vehicles for more than 50 years.
GM closed the plant in March 2019. In December of the same year, Lordstown Motors purchased the plant from GM for $20 million.
The transaction, registered on May 20, involves four lots: 386.6 acres at 2300 Hallock Young Road; 47.9 acres at 1829 Hallock Young Road; another 13.5 acres on Hallock Young Road; and 152 acres on Ellsworth Bailey Road.
The agreement between Lordstown Motors and Foxconn sees Foxconn becoming the contract manufacturer of Lordstown Motors’ first vehicle, the all-battery Endurance pickup truck. It also includes the key joint venture agreement to co-develop future electric vehicles.
As part of the joint venture agreement, Foxconn committed $100 million to the new company, MIH EV Design LLC, including a $45 million loan to Lordstown Motors to support its initial capital commitment.
Foxconn will own 55% of the company and Lordstown Motors 45%. Vehicles developed by MIH EV Design would be built for North America at the Lordstown plant and other contract manufacturing sites around the world.
The sale of the plant included Foxconn reimbursing $27 million to Lordstown Motors for operating and expansion costs, bringing the total price to around $260 million. Foxconn also agreed to a $50 million equity investment in Lordstown Motors, which happened last year.
Limited production of the Endurance is planned for the third quarter with commercial deliveries expected in the fourth quarter. Still, the company announced on May 9 that it needed $150 million in new capital this year to launch the truck.
The plant will also be the production center for PEAR, the second electric vehicle offering from California-based electric vehicle maker Fisker Inc. through a manufacturing agreement with Foxconn.
After the initial ramp-up period, it is expected that at least 250,000 PEAR units will be built per year at the facility.
The company is planning three versions of the auto which they say will allow them to sell 1 million pears in 2027. However, not all of them would be made in Lordstown. The company plans to produce in China, Europe and India.