Lordstown Motors confirms plan to sell Ohio plant to Foxconn

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The potential deal would give the electric truck maker some cash while allowing it to lease part of the facility

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Electric truck startup Lordstown Motors announced Thursday evening that it is in talks with iPhone maker Foxconn to sell it ohio Factory confirms report earlier in the day.

The firm is still working out details, but a joint press release said a potential deal would include Foxconn buying the 6.2-million-square-foot facility for $230 million and Lordstown’s Endurance Pick-up Trucks under a separate agreement. construction will be involved.

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Foxconn, also known as Hon High Technology Group, will purchase approximately $50 million in Lordstown common stock.

A potential injection of cash from the deal could be a lifeline for Lordstown, which has been trying to bring its stamina to the market this year, but has warned investors in the past that it needs more capital to do so. .

“After concluding under certain agreements,” the companies’ press release reads, “Lordstown Motors will enter into a long-term lease for a portion of the existing facility for its Ohio-based employees, and Foxconn will offer employment as agreed. . Lordstown operational and manufacturing staff.”

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“We are excited about the prospect of joining forces with a world-class smart manufacturer such as Foxconn and believe the relationship will provide our company with operational, technology and supply chain advantages and accelerate overall scale vehicle production and Lordstown. Will increase employment in the facility.” Lordstown CEO Daniel Ninivagi said in a statement. “The partnership will allow Lordstown Motors to leverage Foxconn’s extensive manufacturing expertise and cost-efficient supply chain, while bringing endurance to market, developing service offerings for our fleet customers and innovative new vehicle design and development.” model.”

The agreement also holds significance for Foxconn, the world’s largest manufacturer, as it seeks to increase its presence in the electric vehicle industry.

Foxconn already has partnerships with another auto startup, Fisker, to build an electric vehicle.

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Ninivagi told The Wall Street Journal that the terms of Lordstown’s deal with Foxconn are expected to reach the end of October, with closing set for April of 2022.

Granthshala Business’ Gary Gastelu contributed to this report.


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