Lordstown sells electric vehicle plant in Ohio to Taiwan’s Foxconn
LORDSTOWN, Ohio: Electric truck maker Lordstown Motors Corp. sold its Ohio plant to Taiwan’s Foxconn Technology Group for $ 230 million.
Lordstown Motors reached an agreement with General Motors Co. in late 2019 to purchase the plant.
The sale will provide the necessary funds for the mass production of the electric pickup named Endurance.
For Foxconn, which is Apple Inc.’s largest iPhone assembler, the plant would instantly give the company an auto-manufacturing footprint in the United States as it embarks on vehicle manufacturing and sales. electric.
Industry watchers note that selling the facility and running it alongside Foxconn could help Lordstown better operate the facility. At its peak, 10,000 people were employed at the factory.
Lordstown CEO Dan Ninivaggi said in an interview in August that he was looking for partners to help the company take full advantage of the plant, which was once among Ohio’s largest employers.
“The key to unlocking financial potential is to maximize the value of the Lordstown facility,” Ninivaggi said at the time. “We are exploring a number of alternatives. It could take different forms. This is the first job for me.”
For its part, Foxconn will seek to build electric vehicles from the chassis. It is quickly entering the electric vehicle business, as are the big tech companies from Apple to Xiaomi Corp. invest significant sums in new generation mobility technologies.
Earlier in 2021, Chairman Young Liu of Foxconn’s flagship unit, Hon Hai Precision Industry Co., said the company was considering opening an electric vehicle manufacturing plant in Wisconsin.
Observers believe Foxconn’s purchase in Ohio will make it a candidate for making electric vehicles for Apple.