Foxconn buys Lordstown, Ohio factory for $ 230 million to build Endurance EV
Lordstown is in hot water over accusations of counterfeiting electric car pre-orders and battling financial troubles.
The $ 230 million deal will allow Foxconn to even manufacture Fiskers vehicles
Foxconn, the world’s largest contract manufacturer known for building the iPhone for Apple, has made a huge leap forward in the field of electromobility. Now it has acquired the Lordstown Motors Ohio factory for $ 230 million to manufacture the beleaguered automaker’s endurance electric pickup truck. The deal is expected to be completed by April 2022.
As part of the deal, Foxconn purchased $ 50 million worth of common stock direct from Lordstown at $ 6.89 per share. Foxconn will now make a $ 100 million down payment in November, after which a further $ 50 million will be paid in February before the final installment is paid in April to close the deal.
The two parties will jointly develop the electric truck and develop a commercial vehicle program for the North American and international market. Foxconn will also receive 1.7 million warrants to purchase Lordstown common stock at $ 10.50 per share for the next three years. Lordstown will maintain the production line for electric motors, battery modules and pack assembly lines.
Foxconn has also signed a contract with Fisker Automotive to manufacture the Ocean under the PEAR program in North America. Foxconn has hinted that even Fisker’s vehicles are made at the Ohio plant that Lordstown originally acquired from GM in 2019.
Lordstown is in hot water over accusations of counterfeiting electric car pre-orders and battling financial troubles. She has lost many leaders, including President Rich Schmidt, who resigned yesterday. It is also being investigated by the SEC and the DOJ in the United States. This deal could help him handle the situation.
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