Lordstown Motors is set to announce the sale of the eponymous former General Motors production facility in Ohio to Taiwanese multinational electronics contract manufacturer Foxconn.
Per a report from Reuters, the announcement is set to be made this afternoon. Lordstown Motors purchased the facility from General Motors late in 2019, setting up shop to produce new electric vehicles, including the Lordstown Endurance EV pickup truck. Lordstown was previously in talks to produce vehicles for other automakers, as well as possibly leasing out factory space. According to the report, Lordstown uses just 30 percent of the facility’s expansive 6.2 million square feet.
In August of 2020, General Motors agreed to invest $75 million into Lordstown Motors, including the plant and equipment, valued at $20 million. Later, in October of 2020, Lordstown Motors went public following a merger with DiamondPeak Holdings, a deal that valued the all-electric startup at $1.6 billion.
Lordstown Motors is working towards the launch of the Endurance pickup truck as its first product to market. In addition, the startup is seeking additional funding while battling scrutiny from regulators. The EV startup recently appointed Daniel A. Ninivaggi as CEO following the resignation of Steven Burns in the wake of an investigation into allegations that Burns lied about preorders received for the upcoming Endurance pickup truck, previously stating that the company had received more than 100,000 non-binding pre-orders, a claim found to be false by a self-appointed Special Committee.
Regulators took action following a report from short-seller Hindenberg Research, which claimed that Lordstown Motors had “no revenue and no sellable product.” The Hindenberg Research report also claimed that Lordstown Motors had “misled investors on both its demand and production capabilities.”
As for Foxconn, the Taiwanese contract manufacturer is investigating possible locations to build electric vehicles in the United States, previously holding talks with the state of Wisconsin, as well as talks with Fisker Inc. to build new Fisker EVs.