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Saturday, 2 October 2021

(TCR) FOXCONN TO BUILD FOR LORDSTOWN MOTORS


Image Credits: Bloomberg (opens in a new window)/ Getty Images


Foxconn will build electric vehicles for Lordstown Motors as well as its other partner Fisker Inc. at a former GM factory in Ohio, under an agreement announced Thursday.

Lordstown Motors, the beleaguered electric vehicle company that became publicly traded via a merger with a special purpose acquisition company, said Thursday it reached a nonbinding agreement with Foxconn to sell its 6.2-million-square-foot factory. Lordstown purchased the factory in 2019 from General Motors.

Under the agreement, which has yet to close, Foxconn will pay $230 million for the facility. The deal excludes certain assets such as Lordstown’s hub motor assembly line, battery module and packing line assets and certain intellectual property rights. Foxconn will also buy $50 million of Lordstown common stock.

The companies said they will negotiate a contract manufacturing agreement for Foxconn to assemble Lordstown’s Endurance full-size pickup truck at the facility. Reaching a contract manufacturing agreement is a condition to closing the facility purchase. The parties have agreed to explore licensing arrangements for additional pickup truck programs - TechCrunch - link - Kirsten Korosec - link - more like this - link

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