Foxconn to Build Electric Vehicles for Lordstown Motors and Fisker at its Ohio Plant

Foxconn to Build Electric Vehicles for Lordstown Motors and Fisker Inc. at Former GM Factory in Ohio

In a significant development, Foxconn has announced that it will build electric vehicles (EVs) for Lordstown Motors and its partner Fisker Inc. at a former General Motors factory in Ohio, under an agreement reached on Thursday.

Lordstown Motors to Sell 6.2-Million-Square-Foot Factory to Foxconn

As part of the deal, Lordstown Motors will sell its 6.2-million-square-foot factory to Foxconn for $230 million, excluding certain assets such as its hub motor assembly line, battery module and packing line assets, and certain intellectual property rights. The companies have also agreed that Foxconn will purchase $50 million worth of Lordstown common stock.

Negotiating a Contract Manufacturing Agreement

Under the terms of the agreement, Foxconn will negotiate a contract manufacturing agreement with Lordstown Motors to assemble its Endurance full-size pickup truck at the facility. Reaching this agreement is a condition for closing the factory purchase deal.

Exploring Licensing Arrangements for Additional Pickup Truck Programs

The parties have also agreed to explore licensing arrangements for additional pickup truck programs. This partnership is expected to provide both companies with increased market opportunities in scalable EV production in North America, building on their existing partnerships and collaborations.

Fisker Inc.’s Partnership with Foxconn

In May, Fisker Inc., a leading electric vehicle company, signed an agreement with Foxconn to co-develop and manufacture a new EV under the Project PEAR program. The production of this car will be sold under the Fisker brand name in North America, Europe, China, and India.

Project PEAR: A New Electric Vehicle Program

Pre-production for Project PEAR is expected to begin by the end of 2023, with the company aiming to ramp up production into the following year. Fisker has already begun working intensively on all aspects of Project PEAR, including design, engineering, supply chain, and manufacturing.

Magnifying Market Opportunities in EV Production

The partnership between Foxconn and Lordstown Motors is expected to provide both companies with increased market opportunities in scalable EV production in North America. This development comes at a critical moment for Lordstown Motors, which has been struggling financially and faced significant challenges earlier this year.

A New Era of Collaboration in the EV Industry

The agreement between Foxconn and Lordstown Motors marks a new era of collaboration in the EV industry, with both companies working together to drive innovation and growth in North America. This partnership is expected to create significant opportunities for both companies, enabling them to reach new markets and expand their customer base.

What’s Next?

As the agreement between Foxconn and Lordstown Motors moves forward, several key developments are anticipated. The companies will continue to work together on the contract manufacturing agreement, with a focus on scaling up EV production in North America. Additionally, both parties will explore licensing arrangements for additional pickup truck programs, further expanding their market presence.

Industry Implications

The partnership between Foxconn and Lordstown Motors is expected to have significant implications for the EV industry as a whole. As one of the largest electronics manufacturers in the world, Foxconn brings extensive expertise and resources to the table, enabling both companies to drive innovation and growth in North America.

Conclusion

The agreement between Foxconn and Lordstown Motors marks an important milestone in the development of the EV industry in North America. This partnership is expected to create significant opportunities for both companies, driving innovation and growth while expanding their market presence. As the partnership moves forward, several key developments are anticipated, with a focus on scaling up EV production and exploring new markets.

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