Lordstown Motors Sells off Assembly Plant and Enters into Joint Venture with Foxconn
May 12, 2022 By MarketDepth
Lordstown Motors Corp. (Nasdaq: RIDE) yesterday announced that it has closed the sale of its Lordstown, Ohio vehicle assembly plant to Foxconn for $230 Million plus the reimbursement of approximately $27 million in operating and expansion costs.
Company Signed Agreement with Foxconn Affiliate
The company had also signed a contract manufacturing agreement and joint venture agreement for product development with affiliates of Foxconn, creating a $100 million joint venture, MIH EV Design LLC, to develop electric vehicles for the global market.
“The closing of the Foxconn APA and the completion of a joint venture agreement for the development of new electric vehicles using Foxconn’s MIH platform are important milestones for LMC.”Daniel Ninivaggi, CEO of Lordstown Motors
Vehicles developed by MIH EV Design would be built for North America at the Lordstown, Ohio plant, as well as at other Foxconn contract-manufacturing locations around the world. “The creation of the MIH EV Design LLC joint venture between Lordstown Motors and Foxconn supports the EV ambitions of both companies. The MIH shared EV architecture will create synergies in vehicle design, engineering, development, testing, sourcing, and manufacturing. This will enable us to create innovative and winning products for our customers, while optimizing costs and reducing our time to market,” said Edward T. Hightower, President of Lordstown Motors.
Foxconn is committing $100 million towards the new joint venture, including a loan to Lordstown for $45 million to support its initial capital commitment, which will be 55% owned by Foxconn and 45% by LMC.