Foxconn buys Lordstown Motors’ old GM factory for $230 million

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  • Foxconn plans to sign a contract to assemble Lordstown Motors’ first product, an all-electric pickup truck called the Endurance, by the end of April 2022.
  • Cash-strapped electric vehicle start-ups get much-needed capital, while Foxconn begins production of all-electric trucks.
  • Lordstown shares rose more than 13% in hours after the news.

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Taiwan-based electronics maker Foxconn is moving forward with plans to acquire the Lordstown Motors vehicle assembly plant in Ohio for $230 million, the companies announced Wednesday.

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Cash-strapped electric vehicle start-ups will get some respite from capital investment, while the partnership gives Foxconn the start to build a fully electric truck. Lordstown shares rose more than 13% in hours after the news.

according to a Statement From the companies, Foxconn acquired $50 million of common stock directly from Lordstown Motors at a price of approximately $6.90 per share after signing the agreement in September.

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Going forward, Foxconn will make a $100 million down payment by November 18, $50 million later in February and April, and make a final payment before the end of April.

Once the deal is finally closed, Foxconn will receive 1.7 million warrants to buy more shares of Lordstown at a price of $10.50 per share.

Foxconn has also agreed to pursue a contract manufacturing agreement to assemble Lordstown Motors’ first product, an all-electric pickup truck called the Endurance.

In 2017, Foxconn promised the state of Wisconsin to invest $10 billion in a 20-million-square-foot LCD manufacturing facility there, and create 13,000 jobs in the state in exchange for $2.85 billion in subsidies. The state, at the urging of Scott Walker and the Trump administration under former Gov., agreed.

Eventually, Foxconn said it would not be able to deliver on those promises and dramatically withdrew its plans in the state. It slashed its planned investment by $10 billion to $672 million, and slashed the number of new jobs to 1,454.

As part of that dwindling plan, Foxconn entered into an agreement with Fisker to produce EVs in the coming years at Mount Pleasant, Wisconsin, the site of the defunct LCD factory.


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