Foxconn Technology Group plans to acquire a former GM plant in Lordstown, Ohio for its initial production of electric vehicles instead of using its existing facilities or land in Mt. Pleasant.
In a statement, the company said the existing facilities, infrastructure, employees and strong supply chain at the Ohio location “would give Foxconn a speed to market that would meet the needs of production by the end of 2023 “.
“While initial electric vehicle production takes place in Lordstown, Foxconn’s Wisconsin assets will continue to serve as a potential location for additional investment for the growth of Foxconn’s electric vehicles in the United States and will continue to be there. ‘location for data infrastructure hardware and information and communication technologies. production, ”the statement read.
Foxconn has entered into a deal to manufacture cars for electric vehicle startup Fisker Inc. The company had viewed its Wisconsin campus as a potential site to produce the vehicles. When it was originally announced in 2017, the campus was set to be a $ 10 billion project to make large television screens. However, the company has repeatedly altered its plans, first making smaller display screens, then manufacturing servers and other computer products.
To date, the company has constructed four buildings on campus totaling approximately 1.4 million square feet. The original plan called for 20 million square feet of facilities.
Foxconn’s hiring plans have also fallen far short of their original targets, and the company has renegotiated its tax incentive deal with the state of Wisconsin.
The Ohio plant that Foxconn is buying is currently owned by Lordstown Motors Corp. Foxconn has also agreed to buy Lordstown shares for $ 50 million.
The deal between the two companies is non-binding and calls on Foxconn and Lordstown to negotiate a definitive deal for Foxconn to buy most of the facility for $ 230 million. The companies would also negotiate a contract manufacturing deal for Foxconn to manufacture a full-size Lordstown Motors Endurance pickup truck at the site and Foxconn would have certain rights to future vehicle programs.
“We have high expectations of this partnership that we will be able to successfully integrate our resources with Lordstown Motors. In addition to meeting the goal of advancing our schedule to establish electric vehicle production capacity in North America, this also reflects Foxconn’s flexibility in providing design and production services for various electric vehicle customers. Foxconn chairman Young Liu said in a press release. announcement of the agreement.
Foxconn’s statement also said the Lordstown facility “would serve as a quick-to-market asset” that would support Fisker.
“The partnership would allow Lordstown Motors to leverage Foxconn’s vast manufacturing expertise and profitable supply chain, while freeing Lordstown Motors to focus on bringing Endurance to market, developing service offerings for our fleet customers and the design and development of new innovative vehicles. models, ”said Daniel Ninivaggi, CEO of Lordstown Motors Corp., in the statement.