Foxconn and Lordstown Motors, a commercial electric light truck supplier, announced today that the two parties have officially completed the signing of an OEM manufacturing agreement and a joint venture development agreement, officially acquiring Foxconn’s first electric vehicle manufacturing base in North Americ and finalizing Lordstown to become Foxconni's first mass-produced commercial vehicle customer.
According to the previous announcement, Lordstown and Foxconn signed an asset purchase agreement (APA) on November 11, 2021. Hon Hai will acquire the existing production and assembly plant in Lordstown, Ohio, subsequently complete the preparation for asset delivery and transfer, and has obtained regulatory approved.
The OEM manufacturing agreement and joint venture development agreement signed by Foxconn and Lordstown today represent Foxconn's official acquisition of the Lordstown plant as its first electric vehicle manufacturing base in North America, and finalized Lordstown Motors as Foxconn's first mass-produced commercial vehicle customer. Lordstown will begin production of its electric pickup truck at its Ohio plant in the second half of the year, while Hon Hai will supply some components.
The joint venture development agreement stipulates that the two parties will design and develop commercial electric vehicles targeting the global market based on the MIH open platform while Foxconn will invest US$55 million and hold a 55% stake in the joint venture company. The know-how of Foxconn and Lordstown Motors in the ICT and electric vehicle industry enables all OEM customers to achieve the threshold of production scale with lower output and shorter time to market.
After the transfer of assets, a total of about 400 Lordstown employees will be transferred to Foxconn. This group of professional and experienced teams will be an immediate force for Foxconn to develop electric vehicles and Foxconn will not be affected except to protect the jobs of related colleagues. In addition, in the future, it will provide more diversified and forward-looking job development opportunities for North American employees in the field of electric vehicles through cooperation with different OEMs.