Lordstown Motors to announce sale of Ohio plant to Foxconn -source
A Lordstown Motors beta model of its all electrical pickup truck, the Endurance, is seen on the Lordstown Meeting Plant in Lordstown, Ohio, U.S., June 21, 2021. REUTERS/Rebecca Prepare dinner/File Photograph
DETROIT, Sept 30 (Reuters) – Electrical automobile startup Lordstown Motors Corp on Thursday will announce the sale of the northeast Ohio meeting plant it acquired from Normal Motors Co to Taiwan contract producer Foxconn , an individual conversant in the matter stated.
The deal might be introduced by the businesses on Thursday afternoon, stated the supply, who requested to not be recognized. Bloomberg earlier reported that Lordstown was in talks to promote the plant to Foxconn and {that a} deal could possibly be introduced this week.
In August 2020, GM agreed to take a position $75 million in Lordstown, which went public by a merger with DiamondPeak Holdings in a deal that valued the startup at $1.6 billion. GM’s funding included the plant and tools, which had been valued at $20 million.
Lordstown shares had been up 8% in late morning buying and selling.
Foxconn and Lordstown declined to remark when contacted by Reuters.
Lordstown, which named a brand new chief government in August, is working to launch its electrical Endurance pickup truck whereas additionally trying to increase extra funding. The Ohio firm additionally faces regulatory scrutiny.
Lordstown had beforehand stated it was in talks to construct autos for different automakers or lease area in its manufacturing unit. It makes use of solely 30% of the plant’s 6.2 million sq. ft.
Foxconn, in the meantime, has been exploring potential websites to construct EVs in the US. The corporate had beforehand stated it was in talks with Wisconsin about constructing EVs there. Foxconn and Fisker Inc stated in Could they’d finalized a deal for Foxconn to construct EVs for the EV startup.
Lordstown’s founder and largest shareholder, Steve Burns, resigned as chief government in June following an inside investigation into claims made by short-seller Hindenburg Analysis.
Lordstown faces probes by federal prosecutors in Manhattan and the U.S. Securities and Change Fee associated to its merger with a special-purpose acquisition firm (SPAC) and statements it beforehand made about preorders for its autos.
GM introduced its deliberate closure of the sprawling Lordstown plant in Northeast Ohio in November 2018 together with three different U.S. crops, drawing condemnation from then U.S. President Donald Trump and plenty of U.S. lawmakers.
Reporting by Ben Klayman in Detroit, extra reporting by David Shepardson in Washington and Ben Blanchard in Taipei Metropolis; Modifying by Steve Orlofsky and Invoice Berkrot
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