Lordstown Motors Corp., the electric-truck maker running low on cash, is near an agreement to sell its highly politicized Ohio factory to Taiwan’s Foxconn Technology Group, people familiar with the matter told Bloomberg.
The companies are set to announce the pact as soon as Thursday, said the people, who asked not to be named as the plan isn’t yet public. They didn’t disclose the value of the transaction. Lordstown Motors struck a deal with General Motors in late 2019 to buy the plant the automaker opened in 1966.
The sale, if completed, could bring in much-needed funds and potentially help Lordstown Motors realize the benefits of large-scale manufacturing faster by building multiple models in the same facility along with Foxconn. For the biggest assembler of Apple Inc.’s iPhone, the plant would establish the company’s auto manufacturing footprint in the U.S. as it pushes into EVs.
A Lordstown Motors spokesperson declined to comment. Foxconn representatives didn’t immediately respond to requests for comment. Lordstown Motors shares rose 8.4 percent to close at $7.98 on Thursday. The company has lost almost three-quarters of its market value over the last year.
Lordstown Motors has been under investigations by the U.S. Securities and Exchange Commission and the Justice Department after an internal probe concluded that prior management made inaccurate statements about pre-orders for the Endurance. The company is pushing to start deliveries of the pickup next year.