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Fisker CEO Henrik Fisker on the Fisker-Foxconn car
Electric truck startup Lordstown Motors announced Thursday night that it was in talks with iPhone maker Foxconn to sell its Ohio plant, confirming reports from earlier today.
The companies are still working out details, but said in a joint press release that the potential deal would involve Foxconn’s purchase of the 6.2 million square foot facility for $ 230 million and the manufacture of Lordstown’s Endurance vans under a separate agreement.
Lordstown Motors Corp Endurance Truck (Lordstown Motors / Lisa Acierno / Document via REUTERS)
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Foxconn, also known as Hon Hai Technology Group, is also said to buy around $ 50 million of Lordstown common stock.
The deal’s potential cash injection could be a lifeline for Lordstown, which is trying to bring its Endurance to market this year, but has warned investors in the past that it needs more capital for the deal. to do.
“After the final agreements close,” the companies press release read, “Lordstown Motors would enter into a long-term lease for part of the existing facility for its Ohio-based employees, and Foxconn would offer a employment at Lordstown Operations and Manufacturing Employees. “
Lordstown Motors assembly line (Fox Business)
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“We are excited about the prospect of joining forces with a world-class smart manufacturer like Foxconn and believe this relationship would bring operational, technological and supply chain benefits to our business, accelerate overall vehicle production to the ‘scale and would increase employment at the Lordstown plant,’ Lordstown CEO Daniel Ninivaggi said in a statement. “The partnership would allow Lordstown Motors to take advantage of Foxconn’s extensive manufacturing expertise and profitable supply chain, while freeing up Lordstown Motors to focus on bringing Endurance to market, developing offerings of services for our fleet customers and the design and development of new innovative vehicles. models.”
The deal also makes sense for Foxconn, the world’s largest automaker, which is looking to expand its presence in the electric vehicle industry.
Foxconn already has a partnership to make an electric vehicle with another car startup, Fisker.
Signage outside Lordstown Motors Corp. headquarters. in Lordstown, Ohio, United States, on Saturday, May 15, 2021. Lordstown Motors Corp. is expected to release its results on May 24. Photographer: Dustin Franz / Bloomberg via Getty Images (Getty Images)
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Ninivaggi told the Wall Street Journal that the terms of Lordstown’s deal with Foxconn are expected to be reached by the end of October, with a close scheduled for April 2022.
Gary Gastelu of FOX Business contributed to this report.
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