Finally, Lordstown has some good news to report.
Lordstown Motors, which calls itself an OEM of electric light-duty focused on the commercial fleet market, recently announced that it had signed a contract agreement with the Hon Hai Technology Group. The latter trades under the Foxconn name and is best known for manufacturing Apple's iPhone.
The contract is an asset purchase agreement, which will see Foxconn take ownership of Lordstown's Ohio-based assembly plant for a mere $230 million.
The contract came with several conditions, the most important of which is that Lordstown's EV pickup, the Endurance, would be built at the facility.
Foxconn and Lordstown also entered into a joint venture agreement to co-develop EV programs using Foxconn's existing Mobility-in-Harmony platform. This joint venture will be known as MIH EV Design LLC, and the ownership will be split 55/45 in Foxconn's favor. Given Lordstown's history of bad choices, that's the best possible setup.
As we reported earlier this week, Lordstown needs $150 million to get the Endurance to customers. To help with that goal, Foxconn is committing an additional $100 million to the joint venture. It's also giving Lordstown a $45 million loan.
Once that milestone is reached, the two companies can focus on the primary mission, which is developing an MIH platform and building new electric vehicles on it. The Lordstown vehicles will compete in the US commercial market, but the facility will also build cars for other OEMs locally and internationally. The Endurance will go up against rivals like the Ford F-150 Lightning and Rivian R1T.
The objective of this business plan is to provide a faster concept-to-production cycle for smaller automakers. The MIH platform will be highly flexible and can be used for several applications.
"Lordstown Motors' strong engineering and product development capabilities globally provide LMC a scalable vehicle development platform in North America, accelerating EV development, reducing product development costs, and increasing the breadth of LMC's product portfolio over time," Lordstown said in a statement.
"The closing of the Foxconn APA and the completion of a joint venture agreement for the development of new electric vehicles using Foxconn's MIH platform are important milestones for LMC," said Daniel Ninivaggi, CEO of Lordstown Motors. "Our strategic partnership with Foxconn provides LMC with a flexible and less capital-intensive business model, access to broad supply chain and software capabilities, and an effective vehicle development platform to bring EVs to market faster and more efficiently. I have always been a strong believer in what Foxconn is doing to accelerate the adoption of electric vehicles, and we are proud to be their partner."