Foxconn sells former GM Lordstown plant for $88 million and reinvest in U.S. business

Foxconn sells Ohio plant for $88 million

Foxconn, the Taiwanese electronics manufacturer, has reached a deal to sell its former Lordstown factory in Ohio for $88 million. The buyer, Crescent Dune LLC, was described by Foxconn as an “existing business partner” in official statements.

The transaction also includes related sales of electric vehicle machinery and equipment. Combined, these asset sales will generate $375 million in total proceeds for the company.

Buyer Crescent Dune is a recent company

As reported by Car and Driver, Crescent Dune LLC was incorporated only 12 days before the sale in the state of Delaware. Foxconn nevertheless referred to the company as an existing partner in its public communications.

Limited information has been made available about Crescent Dune’s operations or long-term plans. The company has not disclosed publicly how it intends to use the Lordstown facility.

Foxconn purchased the plant in 2022

According to Reuters, Foxconn acquired the Lordstown site in 2022 from Lordstown Motors for $230 million. Lordstown Motors had purchased the factory from General Motors in 2019 after GM closed the plant that year.

Foxconn’s purchase marked its expansion into the United States’ electric vehicle manufacturing. At the time, the facility was planned for the production of multiple EV models for different partners.

Foxconn will keep operating at the site

Foxconn said it will continue to occupy and operate the Lordstown facility after the sale, while reinvesting proceeds in U.S. operations. This allows Foxconn to keep using the property for its manufacturing work while no longer owning the land and buildings.

Such deals are often used in manufacturing to free up funds for other investments. Foxconn says it will reinvest the released capital into expansion projects in the United States.

Additional $287 million in equipment sales

Reuters reported that Foxconn’s total transaction value includes more than just the property sale. The company is selling EV-related machinery and equipment worth $287 million to Crescent Dune LLC.

These assets come from Foxconn subsidiaries EV Asset Management and EV System LLC. The sales of property and equipment together raise the full deal value to $375 million.

Operations at Lordstown will continue

According to CBT News, Foxconn has stated it will continue to operate at the Lordstown facility after the sale. The company says it will keep manufacturing products for customers from that location.

Foxconn also noted it can quickly increase automotive production capacity if demand requires it. This demonstrates the plant remains an important part of Foxconn’s manufacturing plans in the United States.

Plant has a long manufacturing history

The Lordstown factory originally opened in 1966 under General Motors’ ownership. Over the years, it produced a variety of vehicles, including the Pontiac Firebird and the Chevrolet Cruze.

GM shut down the plant in 2019, ending decades of continuous operation. The closure led to its sale to Lordstown Motors later that same year.

Lordstown Motors faced financial struggles

Lordstown Motors planned to build an electric pickup truck called the Endurance at the site. The vehicle used four electric motors, one in each wheel hub.

Only a small number of Endurance trucks were made before the company filed for bankruptcy in 2023. Following this, Foxconn acquired the factory and continued limited EV production there.

Fisker’s electric vehicle plans were canceled

Foxconn had been scheduled to build the Fisker Pear crossover at Lordstown. The Pear was expected to have a starting price below $30,000 in the United States.

Fisker filed for Chapter 11 bankruptcy in June 2024, and the collapse of its programs ended Foxconn’s planned PEAR production at Lordstown.

Other electric vehicle partnerships also ended

Another planned Lordstown manufacturing partner was Indi EV. Indi EV had intended to release a small electric crossover from the Ohio site.

The company filed for bankruptcy in October 2023 before production began. The loss of multiple customers created challenges for Foxconn’s original EV production schedule at Lordstown.

Current product is an electric tractor

Foxconn currently builds the Monarch MK-V tractor at the Lordstown facility. This model is an electric and autonomous farm tractor marketed by California-based Monarch Tractor.

It is unclear whether production of the MK-V will continue following the plant’s sale. Foxconn has not announced any confirmed changes to this specific manufacturing program.

Model C electric SUV plans remain uncertain

Foxconn had previously announced plans to produce its Model C electric SUV in North America. The Model C is already sold in Taiwan under the name Luxgen n7 by Yulon Motor Company.

The Luxgen n7 became one of Taiwan’s top-selling BEVs in multiple months of 2024, with monthly sales over 1,000 units. It is not yet clear whether Model C production will occur at Lordstown following the sale.

Foxconn will reinvest in U.S. expansion

Foxconn plans to use the full $375 million from its property and equipment sales for U.S. expansion. The company’s reinvestment may include projects such as cloud services and data centers.

This reflects Foxconn’s intention to broaden its business activities in the country. It is part of a wider strategy to grow beyond consumer electronics manufacturing.

Foxconn may build AI servers at Lordstown

According to The Wall Street Journal, Foxconn is reportedly considering building artificial intelligence servers at the Lordstown site. This would expand the plant’s operations into a different technology sector.

The company has not released a timeline for potential AI server production. These plans could change depending on market conditions and customer needs.

Foxconn is shifting to an asset-light model

The Lordstown plant sale is part of Foxconn’s move toward an asset-light operating model. This approach focuses on leasing rather than owning property, freeing up capital for manufacturing and development.

Companies use this model to quickly redirect funds into high-growth business areas. Foxconn appears to be applying this strategy in its U.S. operations.

Foxconn partners with Elektrobit to co-develop its next-generation EV platform.

The deal reflects a wider EV industry trend

Foxconn’s transaction is part of a broader pattern in the EV industry. Many global technology and manufacturing firms are reassessing their production strategies in the United States.

Economic uncertainty and changing consumer demand have influenced these adjustments. Foxconn’s decision aligns with these evolving industry conditions.

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This slideshow was made with AI assistance and human editing.