LORDSTOWN, Ohio (WKBN) – What started as an agreement in principle to buy the Lordstown Motors plant became official on Wednesday.
The Taiwanese company known as Foxconn will be taking over the Lordstown Motors plant — the venture that started shortly after General Motors left town.
The news on Wednesday that Foxconn — one of the largest electronics manufacturers in the world — had entered into a definitive asset purchase agreement with Lordstown Motors pleased Youngstown-area Congressman Tim Ryan.
“The prayers we’ve been saying for 40 years about something coming into the community and being transformational, this is it. Our prayers have been answered,” he said.
Lordstown Motors agreed to sell Foxconn the plant for $230 million, but the deal does not include the hub motor assembly line or the battery module and pack lines. They also agreed to pursue an agreement to build the Endurance pickup, but the Endurance is not a done deal yet.
In addition, Lordstown Motors and Foxconn will pursue a joint venture agreement to develop programs for the global commercial fleet market.
“It’s the stuff dreams are made of. So we’re just thrilled with the potential for the workers and the families in our community who have struggled to find really good employment for a long time. This is it. It’s here,” Ryan said.
In announcing the deal on Wednesday, it was stressed that with Foxconn, there’s now an excellent opportunity to fill the plant.
“We’ve said, ‘Look, we’ve got this huge plant, we’ve got a great location, we’ve got a great workforce. Come here and you can make it work,'” Ryan said.
It was also reiterated that the intention is to build the new Fisker PEAR electric car program in Lordstown.
Ten days ago, Fisker CEO Henrik Fisker said, “The plant in Ohio that Foxconn is planning to acquire is really a perfect fit for us and our vehicle.”
“This throws jet fuel on Voltage Valley and gives a global partner that really wants to make Lordstown, Ohio and the Mahoning Valley their North American electric vehicle hub,” Ryan said.
In a statement Wednesday afternoon, Lordstown Motors CEO Daniel Ninivaggi said, “This transaction provides LMC a better opportunity to fulfill its original mission of satisfying the growing demand for electric vehicles.”