Acquiring Ohio EV plant sets a new milestone for Foxconn
Hon Hai Technology Group, otherwise know as Foxconn, and Lordstown Motors have signed a contract manufacturing agreement and a joint venture agreement for product development.
As previously reported by Evertiq, Hon Hai and Lordstown entered into an Asset Purchase Agreement (APA) regarding LMC’s production plant in Lordstown, Ohio back in November last year. The transaction and asset transfer has been approved by regulatory authorities and on May 12, 2022, Foxconn announced that it had completed the facility purchase. In the future, Ohio will be an important electric vehicle manufacturing hub in North America for the Taiwanese manufacturer.
Following the completion of the facility transfer, there will be approximately four hundred Lordstown employees that will transition to employment with Foxconn.
The signed contract manufacturing agreement and joint venture agreement for product development is described as a key milestone for Foxconn. The company is investing USD 55 million in the new joint venture and will hold 55% of the shares. According to the joint venture agreement, the companies will use the Mobility in Harmony (MIH) Open EV Platform to co-design and develop vehicle programs for the global commercial vehicle market. By sharing expertise and integrating resources, the two parties aims to reduce Time to Market and Time to Cost.
With its expertise in hardware software integration and production management of electronics manufacturing, Foxconn will leverage Lordstown's automaking experience and bring the electric pickup truck “Endurance” into mass production.