Lordstown Motors in talks to sell Ohio plant to Foxconn -Businesshala

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DETROIT, Sep 30 (Businesshala) – Electric vehicle startup Lordstown Motors Corp (RIDE.O) is in talks to sell the Northeast Ohio assembly plant, which it acquired from General Motors Co. (GM.N) to Taiwan contract manufacturer Foxconn (2354. TW) was achieved. , Businesshala reported on Thursday.

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Lordstown and Foxconn are set to announce deals as soon as this week, Businesshala reported, citing people familiar with the matter.

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Foxconn and Lordstown declined to comment when contacted by Businesshala.

Lordstown, which appointed a new chief executive in August, is working to launch its electric endurance pickup truck, while also raising additional funding. The Ohio company also faces regulatory scrutiny.

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Lordstown previously said it was in talks to build vehicles for other automakers or lease space at its factory. Lordstown uses only 30% of the plant’s 6.2 million square feet.

Meanwhile, Foxconn is exploring potential sites to manufacture EVs in the United States. Foxconn previously said it was in talks with Wisconsin about building electric vehicles there. Foxconn and Fisker Inc. (FSR.N) said in May that they had finalized a deal for Foxconn to manufacture EVs for EV startups.

Lordstown founder and largest shareholder Steve Burns resigned as chief executive in June following an internal investigation into claims made by short-seller Hindenburg Research.

Lordstown faces investigations by federal prosecutors and the U.S. Securities and Exchange Commission in Manhattan related to a merger with a Special Purpose Acquisition Company (SPAC) and statements previously made about pre-orders for its vehicles.

Lordstown’s shares were up 6.9% in pre-market trading.

Reporting by Ben Kellman in Detroit, Additional reporting by Ben Blanchard in Taipei City; Editing by Steve Orlofsky

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