Lordstown Motors Considers Selling Factory to Foxconn

Lordstown Motors Considers Factory Sale to Foxconn

The electric vehicle startup, Lordstown Motors, gained significant attention in 2019 with the acquisition of a 6.2 million-square-foot manufacturing plant from General Motors. Current financial challenges suggest the company is now poised to sell this facility to Foxconn Technology Group, a Taiwanese firm.

Deal Details and Background

Initial reports from Bloomberg, citing anonymous sources, indicate a potential closing of the deal within the current week. Lordstown’s leadership previously acknowledged ongoing “serious discussions” regarding leasing the Ohio facility to other entities during their second-quarter earnings report. Therefore, the prospect of a sale isn't entirely unexpected.

Although the specific financial terms remain undisclosed, it's anticipated that Lordstown will continue operations within the facility alongside Foxconn. This arrangement could prove advantageous for the struggling EV manufacturer, providing a crucial cash injection and access to Foxconn’s extensive mass-manufacturing capabilities.

Foxconn's Expanding EV Footprint

While widely recognized for its role in producing Apple’s iPhone, Foxconn has been actively expanding its presence in the electric vehicle manufacturing sector in recent years.

The company has already established partnerships with EV startup Fisker, focused on the collaborative development and production of a new electric vehicle model. Furthermore, Foxconn is preparing to initiate the manufacturing of up to 50,000 vehicles annually at a factory in Thailand, in collaboration with PTT PLC, a Thai oil supplier.

Foxconn’s ambitions extend to becoming a leading contract manufacturer for various automakers. To this end, a joint venture was formed with Zhejiang Geely Holding Group, a Chinese automotive company, to offer comprehensive design, research and development, and manufacturing services to OEMs seeking to enter the EV market.

Lordstown's Current Status

Lordstown is targeting the commencement of deliveries for its primary electric truck, the “Endurance,” to a limited number of customers in early 2023. A change in leadership occurred in August, with the resignation of former CEO Steve Burns due to concerns surrounding the company’s financial stability.

Dan Ninivaggi was appointed as the new CEO, approximately one year after Lordstown completed its $1.6 billion merger via a SPAC (Special Purpose Acquisition Company).

Lordstown’s stock previously reached a high of $31.80 per share at its 52-week peak. Currently, the stock is trading at $7.88.

Seeking Confirmation

TechCrunch has contacted both Lordstown Motors and Foxconn Technology Group for official statements. This story will be updated as more information becomes available.

Key Players: Lordstown Motors, Foxconn Technology Group, General Motors, Fisker, PTT PLC, Zhejiang Geely Holding Group
Location: Northeast Ohio (factory location)