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Lordstown Motors reportedly selling Ohio plant to Foxconn

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Electric automobile startup Lordstown Motors on Thursday will announce the sale of the northeast Ohio assembly plant it acquired from General Motors to Taiwan deal manufacturer Foxconn , a individual acquainted with the make a difference claimed.

The offer will be declared by the corporations on Thursday afternoon, claimed the supply, who requested not to be discovered. Bloomberg earlier claimed that Lordstown was in talks to market the plant to Foxconn and that a deal could be announced this week.

In August 2020, GM agreed to commit $75 million in Lordstown, which went public by a merger with DiamondPeak Holdings in a offer that valued the startup at $1.6 billion. GM’s expenditure involved the plant and equipment, which were valued at $20 million.

Lordstown shares had been up 8% in late early morning buying and selling.

Foxconn and Lordstown declined to comment when contacted by Reuters.

Lordstown, which named a new main executive in August, is performing to start its electric powered Stamina pickup truck even though also wanting to elevate additional funding. The Ohio organization also faces regulatory scrutiny.

Foxconn logo displayed on exterior of a building
Lordstown shares were up 8% in late early morning trading on reports it would be promoting its Ohio plant to Taiwan tech company Foxconn.
AFP by means of Getty Illustrations or photos

Lordstown experienced previously mentioned it was in talks to develop vehicles for other automakers or lease place in its manufacturing facility. It utilizes only 30% of the plant’s 6.2 million square ft.

Foxconn, in the meantime, has been exploring doable web sites to develop EVs in the United States. The enterprise had previously claimed it was in talks with Wisconsin about constructing EVs there. Foxconn and Fisker Inc said in May perhaps they experienced finalized a deal for Foxconn to make EVs for the EV startup.

Lordstown’s founder and major shareholder, Steve Burns, resigned as main executive in June pursuing an inner investigation into promises produced by brief-seller Hindenburg Investigation.

Exterior overview of the Lordstown Motors factory
Lordstown experienced previously reported it was in talks to create cars for other automakers or lease area in its Ohio factory at the time owned by GM. It uses only 30% of the plant’s 6.2 million sq. feet.
AFP by way of Getty Pictures

Lordstown faces probes by federal prosecutors in Manhattan and the U.S. Securities and Trade Fee relevant to its merger with a specific-reason acquisition enterprise (SPAC) and statements it beforehand made about preorders for its vehicles.

GM introduced its planned closure of the sprawling Lordstown plant in Northeast Ohio in November 2018 together with three other U.S. plants, drawing condemnation from then U.S. President Donald Trump and a lot of U.S. lawmakers.

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