TNI || New Delhi || 1st Oct 2021
Foxconn, the assembler for iPhone, is buying an automotive factory in Ohio from the struggling startup Lordstown Motors whose core area is EV’s.
The deal is estimated to be around $230 million. The company, in a statement, said that it will be building Lordstown Motors electric pickup truck in the plant that it has bought.
This is the same plant where General Motors manufactured its Chevrolet Cruze.
It has been agreed that Lordstown Motors will provide Foxconn with all the rights concerning its future vehicle program.
This deal will give Foxconn, the conglomerate from Taiwan, its first automotive factory and a significant presence in the U.S. As part of the agreement, Lordstown will be selling $55 million of its shares to Foxconn.
Lordstown Motors had recently said in a statement that to survive, it needed to raise the finances quickly.
Apparently, Lordstown Motors had bought this plant not so long back in 2019 from General Motors and since then has put around $240 million in it to build its electric pickup truck named Endurance.
Notably, Foxconn spent much of its time last year discussing its foray into EV’s.
It has already entered into an agreement with Geely, China’s largest carmaker, as well as Fisker Inc., a California-based EV startup.
On buying the Ohio plant from Lordstown Motors, Foxconn said that Fisker Inc. too shall be allowed to manufacture EV’s in it.