As part of the deal, Lordstown will sell the factory for $230 million and shares worth $50 million to the manufacturing giant.
see photosLordstown closed 100,000 pre-orders at a time
Lordstown Motors has sold its factory in Ohio to Foxconn, the world’s largest contract manufacturer, to close a deal with the Chinese giant to begin making its vehicles on its behalf. Lordstown had originally acquired the factory from General Motors for $20 million and had plans to manufacture EV Pick Up Endurance. Production was scheduled to begin this year, but this was not always possible as the factory needed to be remodeled and other work was needed especially as the Endurance was going to be the first passenger vehicle with in-wheel hub motors that A new technology and largely unproven.
Lordstown went public through a SPAC merger and raised its valuation to $4 billion and also managed 100,000 orders for endurance pickup trucks. But things started going bad for the company as its first prototype caught fire during the first drive. Then its CEO Steve Burns and CFO Julio Rodriguez resigned earlier this summer.
Earlier in the year, Lordstown’s CEO and CFO stepped down.
Lordstown is trying to stabilize things by closing a deal with the maker of the iPhone, which is trying to increase profitability with its foray into manufacturing electric vehicles. As part of the deal, Lordstown will sell the factory for $230 million and $50 million worth of shares to the Chinese construction giant.
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The two are looking at closing a contract construction agreement, a license agreement and, will also have a long-term lease agreement for a portion of the facility for employees based in Lordstown, Ohio.
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