Struggling EV startup Lordstown Motors is nearing a sale of its Ohio manufacturing unit to Taiwanese iPhone assembler Foxconn, which has its personal electrical automobile ambitions, Bloomberg reports. The deal might be introduced as quickly as Thursday night.

Lordstown Motors purchased the 6.2 million sq. foot facility from Common Motors in 2019 shortly after the Detroit automaker closed it down — a choice that drew the ire of then-president Trump. The startup beforehand introduced in August that it was planning to hire out area on the manufacturing unit in an effort to earn cash amid a critical money crunch. Reuters is also reporting that a sale is on the verge of happening.

Since shopping for it, Lordstown Motors has put about $240 million value of labor into getting the manufacturing unit able to construct its electrical pickup truck, the Endurance. A spokesperson for Lordstown Motors declined to remark. Foxconn didn’t reply to a request for remark.

When GM bought the manufacturing unit to Lordstown Motors, Trump praised the deal as “GREAT NEWS FOR OHIO!” However the startup — which was based by the previous CEO of Workhorse, one other struggling EV startup — has run into an unimaginable quantity of hassle ever since, regardless of going public and elevating a whole bunch of hundreds of thousands of {dollars} in 2020. Lordstown Motors’ CEO was pressured out earlier this yr after he was caught mendacity in regards to the veracity of the preorders for its truck. The startup has lowered its preliminary manufacturing targets for that truck, too. Each the Division of Justice and the Securities and Trade Fee have launched probes into Lordstown Motors, and the corporate has mentioned it solely has sufficient cash to outlive by way of mid-2022.

Foxconn has spent a lot of the final yr speaking about increasing into electrical automobiles as a solution to diversify away from shopper electronics. It has struck offers with the likes of Geely, which is China’s largest non-public automaker, in addition to Fisker Inc., a California EV startup that has but to make an electrical automobile. Foxconn has additionally developed its personal electrical automobile platform that it intends to promote to different automakers.

In March, Foxconn mentioned it might reveal the place it needs to construct EVs with Fisker Inc. by July, however that self-imposed deadline got here and went. The corporate had thought of utilizing the principally empty advanced it in-built Wisconsin — one other undertaking that the Trump administration touted extremely — however Fisker founder Henrik Fisker mentioned he didn’t wish to construct his vehicles in a state that wouldn’t allow him to sell directly to consumers.


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