Foxconn buys gm's former factory

On November 11, Lordstown Motors, Inc., a supplier of commercial electric light trucks, and Foxconn Technology Group Inc. announced that they formally signed a final asset purchase Agreement for the Lordstown Facility in Ohio.

The plant was previously owned by GENERAL Motors but was later bought by Lordstown Motors, who sold the plant to Foxconn under financial pressure.

According to the forward announcement, the two parties will jointly promote the Lordstown Motors electric vehicle program at their existing production and assembly plant in Lordstown, Ohio. Following the signing of the agreement in principle, Foxconn then subscribed to Lordstown Motors for approximately $50 million of common shares at a price of $6.8983 per share.

Lordstown Motors sold Lordstown plant and equipment to Foxconn for $230 million, excluding spoke motor assembly lines, battery modules and battery pack assets.

Foxconn agreed to make an initial payment of $100 million by Nov. 18 and $50 million each by Feb. 1 and April 15, 2022. The balance of the purchase price will be paid on the closing date.

The parties have agreed to sign a contract manufacturing agreement for Lordstown's Endurance electric pickup by the closing date, with the parties now targeting completion by April 30, 2022.

The two parties plan to sign a joint venture agreement to design and develop commercial electric vehicles for the global market based on the MIH open platform. Lordstown and Foxconn have the rights to sell the new electric car in North America and internationally, respectively.

Foxconn will receive 1.7 million common stock warrants of Lordstown Motors at $10.50 per share on the closing date.

"This collaboration symbolizes that we and Lordstown Motors will combine our resources to develop Ohio into hon Hai's most important ev manufacturing and r&d hub in North America," said Liu Yangwei, chairman of Hon Hai Technology Group.

Currently, in addition to Lordstown's Endurance electric pickup truck, Fisker's PEAR project will also be manufactured at the facility.