Foxconn is looking to enter the electric car production market. The Taiwanese giant, which already produces iPhones and many other products for the entire IT industry, wants to open a factory in the United States for this, where it should produce for Fisker in particular. Foxconn would seek to be operational from 2023 on American soil and buying an existing factory would save it time.
That’s why Foxconn signed an agreement with Lordstown Motors to buy the Lordstown, Ohio plant. Established in 1966, this plant has long been owned by the American giant GM, which built more than ten million cars there thanks to 10,000 employees at its peak, before closing it in 2019. GM sold the premises to a startup. who are looking to enter the electric pickup market and who have chosen the name of this small town for their brand.
Lordstown Motors is expected to market its electric pickup, named Endurance, as early as this year, but the company has encountered several challenges along the way. Getting out an electric car is not as easy as you might think and the agreement signed with Foxconn tries to find a solution for both parties. The assembler obtains a factory which still needs to be equipped to produce electric cars, but which saves him time; the car manufacturer obtains an industrial partner capable of producing its cars.
If the deal is successful, Foxconn will spend $ 280 million, including 230 million to buy the plant and the rest on Lordstown Motors stock. Negotiations are still ongoing on the production of the pickup and could block the signing of a final agreement. By the way, it would be a good deal for the manufacturer, which had bought the GM plant in 2019 for a pittance: we are talking about $ 16 million.
It’s unclear if Apple will ever build its own car, but if it does, Foxconn could be a close partner. Rumors said that this car should be produced on American soil, this would be one of the requirements of the Cupertino company. By taking over the Lordstown factory, Foxconn would score points …
– .
