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DETROIT (Reuters) – Electric vehicle start-up Lordstown Motors Corp is in talks to sell the northeast Ohio assembly plant it acquired from General Motors Co to Taiwanese subcontractor Foxconn Bloomberg reported Thursday.
Lordstown and Foxconn are expected to announce the deal as early as this week, Bloomberg reported, citing unnamed people familiar with the matter.
Foxconn and Lordstown declined to comment when contacted by Reuters.
Lordstown, who appointed a new chief executive in August, is working on the launch of its Endurance electric van while seeking to raise additional funds. The Ohio-based company is also under regulatory review.
Lordstown had previously said it was in talks to build vehicles for other automakers or lease space at its factory. Lordstown only uses 30% of the plant’s 6.2 million square feet.
Foxconn, meanwhile, explored possible sites to build electric vehicles in the United States. Foxconn had previously said it was in talks with Wisconsin about building electric vehicles there. Foxconn and Fisker Inc said in May that they had finalized a deal for Foxconn to build electric vehicles for the electric vehicle startup.
Lordstown founder and largest shareholder Steve Burns resigned as chief executive in June following an internal investigation into allegations by short seller Hindenburg Research.
Lordstown is the subject of investigations by Manhattan Federal Prosecutors and the United States Securities and Exchange Commission regarding its merger with a Special Purpose Acquisition Company (SPAC) and the statements it has previously made about it. pre-orders of its vehicles.
Lordstown shares rose 6.9% in pre-market trading.
(Reporting by Ben Klayman in Detroit, additional reporting by Ben Blanchard in Taipei; Editing by Steve Orlofsky)
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