Taiwan's Foxconn has deal to buy former GM plant in Ohio

Foxconn Technology Group, the world's largest electronics maker, has a woody to bargain a immense car assembly works successful Ohio from startup electrical motortruck shaper Lordstown Motors, the companies announced Thursday.

The statement stands to springiness Taiwan-based Foxconn, champion known for making Apple iPhones, an introduction into the increasing electric conveyance market, a determination it has been looking astatine for months.

It besides brings much-needed backing to struggling Lordstown Motors, which has been nether expanding scrutiny implicit its deficiency of orders and said past period that it couldn't warrant that it volition past done the year.

The 2 companies announced a nonbinding statement to negociate a woody nether which Lordstown would merchantability the erstwhile General Motors works successful Ohio adjacent Youngstown, excluding immoderate assets, for $230 million.

Foxconn volition besides bargain astir $50 cardinal of Lordstown Motors' stock, which roseate much than 8% successful Thursday's regular-session trading but is inactive down 60% for the year. It roseate different 7% aft hours.

Foxconn successful March said it was considering making electrical vehicles successful either Mexico oregon astatine its highly anticipated Wisconsin plant, which was archetypal announced successful 2017 and has since been scaled back.

Company Chairman Young Liu said astatine the clip that Foxconn wants to instrumentality 10% of the marketplace stock of electric vehicles by making full vehicles oregon components.

Then successful May, Foxconn and Stellantis, the world's 4th-largest automaker formed by the merger of Fiat Chrysler Automobiles and PSA Peugeot, announced they're processing a jointly operated automotive supplier focusing connected exertion to marque vehicles much connected.

The statement with Lordstown gives Foxconn a sprawling manufacturing tract wherever GM built cars for much than 50 years earlier closing the works successful 2019. At its peak, the mill was location to astir 10,000 workers.

Lordstown promised to revive the works aft acquiring it successful 2019 and had planned to statesman accumulation of its marquee Endurance pickup motortruck successful September. Its investors see GM, which took a 5% stake.

But Lordstown has struggled to rise money, gone done absorption shakeups and faced expanding scrutiny from national regulators.

The fledging automaker's top 2 executives stepped down successful June amid doubts implicit the fig of orders placed for the Endurance. In July, the institution acknowledged receiving 2 subpoenas from federal regulators and besides that prosecutors successful New York person opened an probe into the company.

The Securities and Exchange Commission asked successful a brace of subpoenas for documents related to the company's merger with DiamondPeak, a peculiar intent acquisition company.

After the company acknowledged that it had nary steadfast orders for its vehicles, it said that the U.S. Attorney's Office for the Southern District of New York was "investigating these matters."

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