EV firm Lordstown completes $230 million sale of its Ohio manufacturing facility to Foxconn – MajorUpdates

Struggling EV firm Lordstown accomplished the sale of its Ohio manufacturing facility to Foxconn, the Taiwanese firm that assembles Apple’s iPhone. The manufacturing facility, which bought for $230 million, will now develop into the positioning of a three way partnership between the 2 firms.

The deal was initially set to shut final month, however Lordstown stored pushing again the deadline. If the sale wasn’t accomplished earlier than May 18th, the corporate would have needed to pay again the $200 million that Foxconn put down as a deposit — an quantity that Lordstown has mentioned it doesn’t have.

The new three way partnership will probably be known as MIH EV Design LLC and will probably be 55 % owned by Foxconn and 45 % by Lordstown. Foxconn will commit $100 million to the three way partnership, together with a $45 million mortgage to Lordstown, to construct a lineup of electrical pickup vans. Since shopping for it from General Motors in 2019, Lordstown Motors has put about $240 million value of labor into getting the manufacturing facility able to construct its electrical pickup truck, the Endurance.

The deal provides Foxconn its first automotive manufacturing facility and a major new presence within the US — one which the corporate will use because it tries to ascertain itself as a worldwide electrical car automaker. Foxconn beforehand introduced a large LCD panel manufacturing facility in Wisconsin however has didn’t reside as much as the myriad guarantees it made to that state.

Foxconn has spent a lot of the final yr speaking about increasing into electrical automobiles as a technique to diversify away from shopper electronics. It has struck offers with the likes of Geely, which is China’s largest non-public automaker, in addition to Fisker Inc., a California EV startup that has but to make an electrical car. Foxconn has additionally developed its personal electrical car platform that it intends to promote to different automakers.

https://www.theverge.com/2022/5/11/23067722/lordstown-ev-factory-sale-foxconn-ohio-deal

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