Monarch Tractors Ends Foxconn Deal

Foxconn Ends Tractor Production for Monarch Tractor

Foxconn has ceased manufacturing electric tractors for California-based startup, Monarch Tractor, following the recent transfer of its Ohio facility to SoftBank.

This development was verified by Monarch CEO, Praveen Penmetsa, through a statement on LinkedIn on Tuesday.

Inventory and Future Plans

Pemmentesa indicated that a proactive approach was taken with Foxconn to accumulate sufficient inventory prior to the factory’s sale.

He further stated that the company possesses enough tractors to fulfill customer orders for the next year, alongside a comprehensive supply of spare parts.

“Details regarding the introduction of additional Monarch-supported products through new manufacturing collaborations will be disclosed in the coming weeks,” Penmetsa elaborated.

Factory's New Purpose

Subsequent to the sale, SoftBank is anticipated to collaborate with Foxconn to repurpose the facility for the production of equipment essential to the Stargate AI initiative, a project spearheaded by OpenAI and Oracle.

Foxconn's Initial Investment

Foxconn initially acquired the former General Motors factory from Lordstown Motors in 2022.

Prior to the sale’s completion, Young Liu, Foxconn’s chairman, positioned the facility as the central electric vehicle manufacturing and research & development hub in North America.

Challenges Faced by Monarch

Monarch was among the four companies Foxconn highlighted as clients – or potential clients – for its electric vehicle contract manufacturing operations at the former General Motors plant.

While Foxconn assembled several hundred tractors for Monarch, the startup encountered difficulties.

Last year saw two rounds of workforce reductions and a necessary shift in focus due to a downturn in California’s wine industry.

Other Failed Partnerships

All three remaining companies Foxconn aimed to manufacture vehicles for have since filed for bankruptcy.

Although a limited number of Lordstown Motors pickups were produced at the plant by Foxconn, the startup ultimately ceased operations in 2023.

The other two prospective customers, Fisker Inc. and IndiEV, a smaller California-based company, never had vehicles built by Foxconn at the factory and have also subsequently gone out of business.

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