Foxconn has acquired Lordstown Motors for its EV manufacturing entry in the U.S.
Hon Hai Technology Group, also known as Foxconn, will enter the EV sector in the U.S. as it reached a deal with Lordstown last week.
According to Axios, there is no guarantee that Foxconn will have a smooth transition. LMC Automotive analyst Jeff Schuster said, “Obviously, the iPhone is complex. I’d say an electric vehicle is maybe a little more complex,”
He added, “It’s a leap, but there are certainly some synergies there — and their expertise in the development of components in that space should (help) as the EV moves into more of a high-tech vehicle space.”
ACQUIRING LORDSTOWN
Last week, Foxconn signed a manufacturing and joint venture with Lordstown Motors Corp. The latter sold its factory in Ohio for $230 million and is now a joint venture between the two companies. The facility will become Foxconn’s electric vehicle manufacturing plant in North America.
The new joint venture will be MIH EV Design LLC, 55% owned by Foxconn and 45% by Lordstown.
Foxconn will also commit $100 million to the joint venture, including a $45 million loan to LMC.
According to the agreement, the companies will use the Mobility in Harmony Open EV platform to co-design and develop EVs. Foxconn’s knowledge and expertise in producing electronics will leverage Lordstown’s automaking experience. It will eventually mass-produce LMC’s electric pickup truck “Endurance.”
Foxconn is also expected to make a vehicle for EV startup Fisker. It will be assembled in the Ohio plant starting in 2024. They are known for creating Apple’s iPhone. Accordingly, Apple is also rumored to enter the EV industry as it recently hired a Ford veteran for its operations.
Foxconn is a Taiwan-based company and the world’s largest electronics manufacturer.
