IEN Radio

Foxconn Could Soon Own Lordstown

May 05, 2022 Eric Sorensen
IEN Radio
Foxconn Could Soon Own Lordstown
Show Notes

Lordstown Motors has struggled with a moving target of challenges over the past few years, among them multiple lawsuits that accused the EV maker of breach of contract, conspiracy and outright fraud.

It seemed for a moment the company was destined for bankruptcy, when a unique opportunity arose. Foxconn, the global electronics contract manufacturing giant based in Taiwan, handed the company an offer that was tantamount to a lifeline and in September of last year, the two parties came to an agreement…

Foxconn would buy Lordstown’s Ohio factory for $230 million, as well as purchase $50 million in stock, and the companies would parse out a deal for Foxconn to assemble Lordstown’s flagship SUV and build out its own EVs leveraging Lordstown technology.

But since then, the road has been rocky. In March it was revealed that the deal hit a snag as the two parties were reportedly struggling to come to terms on certain conditions. More recently, US regulators have cleared the deal, but Lordstown has confirmed the conditions to close still have not been met and instead of closing on the deadline of April 29th, Foxconn issued a press release.