Lordstown Motors Corp. announced on Wednesday that it has finally closed its deal with Taiwan-based Foxconn, which will provide the company with much-needed capital that will help it continue its operations. Just earlier this week, the Ohio-based automaker said that an agreement had not been reached and expressed concerns about not having enough available cash.
Lordstown and Foxconn have been in discussions since September of 2021, and under the terms that were agreed to this week, Foxconn will purchase the automaker’s Lordstown facility for $260 million and also employ 400 current Lordstown employees. Foxconn will be producing the Lordstown Motors Endurance pickup truck and will also be allowed to build other brands of EVs, should it choose to.
Lordstown Motors has said production of the Endurance truck will begin in Q3 of this year.
A joint venture between the two companies will also allow Lordstown Motors access to Foxconn’s platform that it uses to design EVs, and Foxconn would be allowed to sell any created designs in other markets. Foxconn will reportedly put $100 million towards the venture and take 55% ownership of it.
Dan Ninivaggi, Lordstown’s Chief Executive Officer, said that the company is focused on getting vehicles on the market and added that the partnership with Foxconn will enable Lordstown Motors to “create innovative and winning products for [its] customers, while optimizing costs and reducing [its] time to market.”
Did you enjoy this article from Kimberly Hurley? Read other articles on CBT News here Please share your thoughts, comments, or questions regarding this topic by submitting a letter to the editor here, or connect with us at firstname.lastname@example.org.
Be sure to follow us on Facebook and Twitter to stay up to date or catch up on all of our podcasts on demand.
While you’re here, don’t forget to subscribe to our email newsletter for all the latest auto industry news from CBT News.