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Thursday, October 21, 2021

Lordstown Motors reportedly promoting former GM manufacturing unit to Foxconn

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Struggling EV startup Lordstown Motors is nearing a sale of its Ohio manufacturing unit to Taiwanese iPhone assembler Foxconn, which has its personal electrical automobile ambitions, Bloomberg reports. The deal may very well be introduced as quickly as Thursday night.

Lordstown Motors purchased the 6.2 million sq. foot facility from Normal Motors in 2019 shortly after the Detroit automaker closed it down — a choice that drew the ire of then-president Trump. The startup beforehand announced in August that it was planning to lease out house on the manufacturing unit in an effort to earn money amid a severe money crunch. Reuters is also reporting that a sale is on the verge of happening.

Since shopping for it, Lordstown Motors has put about $240 million value of labor into getting the manufacturing unit able to construct its electrical pickup truck, the Endurance. A spokesperson for Lordstown Motors declined to remark. Foxconn didn’t reply to a request for remark.

When GM offered the manufacturing unit to Lordstown Motors, Trump praised the deal as “GREAT NEWS FOR OHIO!” However the startup — which was based by the previous CEO of Workhorse, one other struggling EV startup — has run into an unbelievable quantity of hassle ever since, regardless of going public and elevating a whole bunch of tens of millions of {dollars} in 2020. Lordstown Motors’ CEO was compelled out earlier this yr after he was caught lying about the veracity of the preorders for its truck. The startup has lowered its preliminary manufacturing targets for that truck, too. Each the Division of Justice and the Securities and Change Fee have launched probes into Lordstown Motors, and the corporate has stated it solely has sufficient cash to outlive by means of mid-2022.

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

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In March, Foxconn stated it could reveal the place it desires to construct EVs with Fisker Inc. by July, however that self-imposed deadline got here and went. The corporate had thought-about utilizing the mostly empty complex it built in Wisconsin — one other mission that the Trump administration touted extremely — however Fisker founder Henrik Fisker stated he didn’t wish to construct his automobiles in a state that wouldn’t allow him to sell directly to consumers.



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