Lordstown Motors closes sale of plant to Foxconn for $230M in much needed cash

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Back successful an unassuming country adjacent the exit of the ACT Expo astatine the Long Beach normal halfway sits a achromatic Lordstown Motors Endurance pickup. As astatine slightest 2 ACT attendees asked questions astir the prototype, its manufacturers were publically announcing the authoritative merchantability of its assembly plant. Lordstown Motors has officially closed its woody with Foxconn, who volition present physique the former’s Endurance pickup nether a caller associated task (JV) and manufacturing contract.

Behold the adjacent section successful the epic of Lordstown, Ohio, wherever an EV automaker stuck its emblem successful the crushed and declared tremendous aboriginal occurrence in the signifier of 100k pre-orders, lone to tumble from “serious contender” to “oh yeah, I forgot astir them.”

The archetypal ace successful Lordstown’s armor came erstwhile an Endurance prototype caught fire successful March of 2021. This publicity enactment a keener absorption connected a damning study by notorious abbreviated seller Hindenberg Research, calling into question the veracity of the orders Lordstown execs were touting.

A period later, the Endurance pickup’s integrity was called into question again aft the Lordstown squad bowed retired of the San Felipe 250 contention after conscionable forty miles. By June, the company’s CEO and CFO resigned amidst the questioning of orders, portion its clever PR squad spun the modulation arsenic a enactment alteration arsenic the Endurance trucks entered commercialization.

Here we are astir a twelvemonth later, with small advancement to share. That’s wherever Foxconn comes successful arsenic a imaginable savior to a down and retired Lordstown Motors. Last November, Lordstown announced plans to merchantability its Ohio assembly plant to Foxconn – a Chinese shaper that has successfully built vehicles – with hopes it tin measurement successful and get the Endurance implicit the decorativeness line.

Following months of negotiations and paperwork, the closing of the merchantability is implicit and Lordstown Motors has entered into a associated task with Foxconn to yet (hopefully) get those Ohio assembly lines humming.

Lordstown FoxconnLordst… I mean Foxconn’s assembly works successful Lordstown, Ohio / Source: Lordstown MotorsLordstown completes merchantability to Foxconn to decorativeness what it started

The closing of the plus acquisition statement was announced by Lordstown Motors ($RIDE) successful a property merchandise outlining the presumption of the deal. The authoritative merchantability of the Ohio works erstwhile owned by GM volition nonstop $230 cardinal to Lordstown, positive a reimbursement of astir $27 cardinal successful operating and enlargement costs dating backmost to past September.

In return, Foxconn volition instrumentality implicit the Ohio assembly works and volition physique the Endurance BEV pickups nether a manufacturing declaration signed by Lordstown Motors. According to Lordstown, determination volition beryllium nary interruptions to the advancement of the Endurance arsenic Foxconn takes the reigns. The 400 existent Lordstown employees volition commercialized successful their institution badges and articulation the Foxconn family.

Additionally, some companies person formed a associated task called MIH EV Design, LLC and volition co-develop aboriginal EV products utilizing Foxconn’s open-source Mobility-in-Harmony (MIH) platform. To get the caller JV rolling, Foxconn is investing an further $100 cardinal portion floating Lordstown Motors different $45 cardinal to capable its superior committedness to the venture.

In North America, MIH volition make and manufacture Lordstown Motors marque EVs, portion simultaneously processing vehicles for different OEMs successful planetary markets. Current Lordstown CEO Daniel Ninivaggi spoke to the done deal:

The closing of the Foxconn APA and the completion of a associated task statement for the improvement of caller electrical vehicles utilizing Foxconn’s MIH level are important milestones for LMC. Our strategical concern with Foxconn provides LMC with a flexible and little capital-intensive concern model, entree to wide proviso concatenation and bundle capabilities and an effectual conveyance improvement level to bring EVs to marketplace faster and much efficiently.  I person ever been a beardown believer successful what Foxconn is doing to accelerate the adoption of electrical vehicles and we are arrogant to beryllium their partner.

The commencement of commercialized accumulation for the Endurance pickup is targeted for Q3, with archetypal deliveries expected successful Q4.

Electrek’s Take

At its precise core, this full process has had person been a humbling 1 for Lordstown Motors, portion providing different prospective startups and OEMs a parable connected what not to do. Foxconn arrives arsenic the existent leader of this communicative and has the expertise, infrastructure, and astir importantly capital, to assistance this erstwhile celebrated pickup retired of obscurity and onto roads.

Its a win-win successful my opinion. Lordstown gets the superior to really (probably) unrecorded to spot its first-born scope commercialized production, portion Foxconn cleans up connected its revenues. If I were a young startup oregon OEM, I’d see designing the EV myself and permission the scaled manufacturing to the pros. A strategy Fisker has adopted that appears to yet enactment successful its favor.

Perhaps, dilatory but surely, the hype bid for the Endurance pickup starts to creak guardant backmost into relevance acknowledgment to Foxconn. The mode this manufacture is moving, the all-electric pickup volition get successful a wholly antithetic EV scenery than it would person past year, with EV pickups already successful driveways and respective much connected the mode from immoderate large OEMs.

The adjacent question volition be, “how does the Endurance compare?” Let’s subtly clasp our enactment arsenic we attack SOP and anticipation to spot much “show” soon. Based successful the company’s past outlined above, we can’t conscionable spell disconnected the “tell” anymore.

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