Taiwanese multinational electronics manufacturer Foxconn recently closed a deal with Lordstown Motors to acquire the former GM Lordstown plant in Ohio. The final deal rings to the tune of $230 million, and excludes specific assets such as the battery pack lines and hub motor assembly.
Lordstown Motors first announced the deal with Foxconn last year. Under the agreement, Lordstown will enter a new joint venture with Foxconn, with the former keeping a 45-percent stake, and the latter taking the remainder. Foxconn is also known as the primary manufacturer of the Apple iPhone.
According to a recent report from Reuters, the startup electric automaker will receive $260 million in proceeds, which includes reimbursements for operating and expansion costs. Going forward, the product development joint venture will enable Lordstown to raise additional cash following the delivery of the first all-electric Lordstown Endurance trucks to customers. The Endurance pickup will be produced at the former GM Lordstown facility.
Back in Q4 of 2021, GM sold its stake in Lordstown Motors as the latter sought additional funding to put the Endurance pickup into production. GM received 7.5 million shares of Class A common stock in exchange for selling the Lordstown facility at a discounted rate in 2018.
Foxconn also has a deal in place with another all-electric vehicle manufacturer, Fisker Inc., with Foxconn set to produce Fisker’s second model to date, the Fisker Pear. The new Fisker Pear will slot in below the Fisker Ocean in the EV company’s product lineup. The new Fisker Pear will also be produced at the former GM Lordstown plant in Ohio, and will utilize a platform that will underpin two additional Fisker models set for development at a later date.
The Fisker Pear compact will hit production in 2024, and will start under $30,000. Foxconn is poised to roll out at least 250,000 units of the Fisker Pear annually when the facility is at full production, with sales in North America, China, Europe, and India.
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Comments
GM sold the Lordstown complex for $20 million. It is resold for $230 million to a foreign company that will now make small cars to fill the void that GM created by eliminating the Cruze.
GM basically created an opening for another competitor.
Another brilliant move by Mary Barra.
didn’t they also sell it to get rid of workers too? that probably saved them a few bucks.
Does anyone really believe this plant will be producing series production vehicles in a few years?
FoxCONn can’t be trusted to follow through with anything they promise. Just ask the people of Wisconsin.
Are you talking about the deal the orange one kept bringing up as an example of his negotiating prowess?
Yeah, that one!
The Fisker Pear?
That has to be the stupidest name for a car that I ever heard.
Fisker has taken a complete 180. They used to be cool cars. The fisker ocean is less vanilla than a Tesla and I can only image what the “pear” will look like.
Chinese invasion
Step 1. Now all American makers will run to them for building cars ….
Step2 : Factory builds 2 models ( one Chinese brand and one American , Chinese brand priced less _)
Step 3: American brand is in loss, they withdraw
Step 4: Full Chinese brand product , prices are back up again.
Why does it matter what’s going to be built there by Foxconn?
GM wasn’t using it anymore regardless.