We knew this was going to happen and now, the Taiwanese gambler Foxconn has officially closed the deal to buy the Ohio plant of Lordstown Motors.
Lordstown has entered the automated space with many promises but has so far failed to deliver. EV Startup bought the site from General Motors but will now transfer ownership to Hon Hai Technology Group. In addition, Lordstown’s 400 manufacturing workers will be transferred to Foxconn, and iPhone maker will be responsible for building the all-electric endurance pickup truck.
Read more: Lordstown says it needs an additional 150 million to start tolerance production
Auto News notes that the deal means Lordstown will no longer operate as an automaker and will instead become a product development and engineering garment. An additional $ 100 million will be invested by Foxconn to create a joint venture affiliate that will build EVs using its Mobility-in-Harmony platform.
Speaking to the press, Lordstown chief executive Daniel Ninivagi reiterated earlier statements that despite the cash injection from Foxconn, it did not have enough money to start production of endurance this autumn. In fact, it wants to raise an additional $ 150 million to meet its production targets.
“We have about 250 engineers, product development people, mostly in the Farmington Hills [Mich.] And Irwin [Calif.]. We have everything except purchasing, quality, production, ”Ninivagi added.
Foxconn’s ownership of the Ohio plant will allow it to build the affordable ‘PEAR’ electric vehicle currently being built by Fischer.
Lordstown’s loss for the first quarter of 2022 stood at $ 89.6 million, down from 125 125.2 million in 2021. The company said it had a cash balance of $ 204 million compared to $ 587 million a year ago.
“I have a lot of faith in Foxconn’s strategy,” Ninivagi said Auto News. “Automotive is something difficult, but they have conviction. They are investing all over the world. Foxconn sees vehicles the way technology companies see vehicles as platforms. And innovation is growing in software. And no one is better at software and hardware integration than Foxconn.