According to sources, Lordstown Motors Corp is running low on cash and is nearing an agreement to sell their Ohio factory to Foxconn.
Lordstown bought the plant in late 2019 from General Motors, but the Ohio startup needs a cash influx to fund large-scale manufacturing.
If the deal goes through, Lordstown would still produce their vehicles in the plant, alongside models brought in by Foxconn.
UPDATE October 1, 2021 11:24AM PST: Lordstown has now confirmed the sale to Foxconn.
“Lordstown Motors Corp, a provider of electric light duty trucks focused on the commercial fleet market, today announced that the Company and Hon Hai Technology Group (“Foxconn”) have reached an agreement in principle to work jointly on electric vehicle programs in the Company’s assembly plant in Lordstown, Ohio. In connection with this announcement, the Company is today updating its production plan and financial outlook.”
Foxconn would gain a much-needed auto manufacturing footprint in the US as they ramp up their EV manufacturing business.
This partnership and sale is not a surprise. CEO of Lordstown noted last month that one of his focuses was to find a partner for the Ohio plant.
For Foxconn, the move makes sense. The company is the single largest producer of Apple iPhones and wants to expand its operation into EVs.
The company hopes to replicate its smartphone success by building clients EVs from the chassis up. Foxconn currently has an open EV platform, inked a production deal with Fisker and partnered with PTT Pcl in Thailand for EV work.
The sources did not include any other details or have a valuation of the deal. Neither Lordstown nor Foxconn commented on the rumours of a potential sale.
Source: Bloomberg
