At one time, fans of electric vehicles have great hopes for Lordstown Motors. The company promises a unique and capable electric vehicle that is encouraging many people, but the company has not provided. Lordstown Motors struggles to get EV into production. However, something interesting now happens with Lordstown Motors and Taiwanese manufacturing giants called Foxconn. They reportedly working on an agreement of $ 280 million that would see Foxconn buying manufacturing facilities from Lordstown.
The deal will see Lordstown and Foxconn working with Foxconn earning $ 50 million in equity in Lordstown Motors. Former GM factory will sell for $ 230 million, significant markup of $ 20 million given by Lordstown to acquire a factory from GM two years ago.
Foxconn will spend $ 50 million from buying ordinary shares in Lordstown by appointment to help assemble resilienceal electrical trucks. However, the source noted that the agreement depends on both sides agreed to build an electric vehicle. Foxconn wants to start mass production in April next year, according to the report.
Foxconn has pushed further from its traditional business building electronic devices, such as the iPhone for Apple. Foxconn has an open source electric vehicle platform that will be built for contract partners, including Fisker. Scale production is very important in the electrical vehicle market because more and more units can be produced by manufacturers, the cheaper ones they have to make.
The CEO of Lordstown Motors and Ninivaggi said that Foxconn has a vision and can fill the factory faster than you can. Also, part of the agreement is an agreement that will formalize the basis of the cost to produce a durability pickup. The $ 50 million investment in ordinary shares will occur whether the two companies can approve production.
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