Foxconn Sells Former GM Factory

Foxconn Exits Ohio EV Factory After Production Struggles

Foxconn has divested itself of the former General Motors manufacturing plant it acquired three years ago, following an inability to establish substantial, large-scale electric vehicle production at the site.

Second Setback for U.S. Manufacturing Promises

This decision signifies the second significant instance of Foxconn failing to fulfill commitments aimed at revitalizing U.S. manufacturing. Previously, the iPhone manufacturer pledged to construct a large LCD factory in Wisconsin – a project lauded by Donald Trump as the “eighth wonder of the world” – but ultimately delivered far less than initially promised.

Details of the Sale

According to filings, the purchaser is identified as “Crescent Dune LLC,” an entity recently established in Delaware just twelve days prior to the transaction. Matt Dewine, representing Foxconn, refrained from providing further details regarding the buyer’s identity.

The factory and associated land were sold for approximately $88 million, while machinery and equipment belonging to Foxconn’s EV divisions fetched around $287 million, as indicated in Taiwan stock exchange documents.

Future Plans and a Shift to AI

A Foxconn spokesperson communicated to Automotive News that the company intends to maintain “involvement in the manufacturing of products for customers at the Lordstown facility” and reaffirmed its dedication to customers and suppliers within the automotive sector. However, The Wall Street Journal reported that Foxconn is now planning to repurpose the factory for the production of AI servers. Dewine has not yet responded to inquiries regarding this report.

Initial Acquisition and Ambitious Goals

Foxconn initially announced the acquisition of the former GM plant in 2021 for $230 million, at which time it was still under the ownership of EV startup Lordstown Motors. Foxconn Chairman Young Liu stated at the time that the facility would become “the most important electric vehicle manufacturing and R&D hub in North America.”

Challenges with Partner Companies

While concurrently developing EVs in Asia, Foxconn focused on contract manufacturing within the United States. However, three of the electric vehicle companies Foxconn anticipated utilizing the factory subsequently filed for bankruptcy.

Turbulent Relationships and Bankruptcies

Foxconn did manage to produce a limited number of EVs at the factory for the now-defunct Lordstown Motors. This relationship, however, deteriorated into a contentious dispute. Lordstown Motors declared bankruptcy in June 2023, accusing Foxconn – which had become an investor – of “starving it of cash” and acting “maliciously and in bad faith” to undermine the business.

The company also invested in IndiEV, a smaller EV startup, with plans to build its electric SUV at the Ohio factory. IndiEV filed for bankruptcy in October 2023, holding less than $3 million in assets. Furthermore, Foxconn had agreements to manufacture vehicles for Fisker Inc., which also filed for bankruptcy in June 2024.

Limited Impact from Monarch Tractor

A fourth company, Monarch Tractor, has had minimal impact, with Foxconn producing no more than a few hundred electric tractors. Attempts to reach Monarch’s CEO, Praveen Penmetsa, for comment regarding the continuation of tractor production in Ohio were unsuccessful.