Foxconn & Lordstown go into alliance to make E cars

Foxconn & Lordstown go into alliance to make E cars-lordstown

Apple partner Foxconn wants to get into the car business and is therefore now implementing the planned purchase of the US factory of the ailing electric start-up Lordstown Motors. In total, the company is investing the equivalent of 201 million euros. Foxconn takes over the car factory from Lordstown Motors. Among other things, the electric pickup called Endurance is to roll off the assembly line there.

The two companies want to record this in a joint agreement, which is to be concluded by the end of April 2022. Before Foxconn, Lordstown Motors had taken over the car factory in the town of the same name from General Motors in 2019 after the US carmaker had closed it in the same year. Despite the support of ex-President Trump and some investors, the US startup ran out of money to start mass production and to finance the market launch of such vehicles. The production of the pick-up truck has sometimes not started.

Already in the summer of 2021 it was reported that Foxconn wants to build electric cars in the US, Thailand and perhaps Europe. Appropriate locations are being sought for this. A start has now been made with the takeover of the e-car factory in Lordstown. In addition to Lordstown’s pickup, Fisker’s PEAR (Personal Electric Automotive Revolution) series electric vehicles will also be produced there, according to the agreement. With the “PEAR”, both companies want to develop a crossover model that should come onto the market at the end of 2023. More than 250 should then per year.000 vehicles will be built, it is said.

Foxconn also announced a partnership with Stellantis in May. The two groups are planning a jointly operated automotive supplier that will focus on technologies to improve vehicle connectivity. Again and again there were also rumors about a possible partnership with Apple, which is still or again working on an electric car. However, there is no definitive information yet.

Lordstown Motors also benefits from the deal with Foxconn. The company expects cost and market advantages in the supply chain and the integration of software and hardware. In addition to purchasing the factory for the equivalent of $201 million, Foxconn has purchased $50 million worth of stock and will also receive 1.7 million stock warrants from Lordstown Motors as part of the agreement upon closing. The $100 million first installment for the auto factory will be paid on March 18. Due November 2021. The takeover of the factory is expected to be completed in April 2022.

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1 thought on “Foxconn & Lordstown go into alliance to make E cars”

  1. That would also be the opportunity for a new company name. Translated an electric car from “City of God” is just as strange as from “Volkswagen”. Both unattractive and with a strange “bad taste”.

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