Taiwanese iPhone maker Foxconn is acquiring nearly a fifth of loss-making US electric truck maker Lordstown, expanding its electric vehicle business. According to Tuesday’s information, the world’s largest electronics contract maker is paying up to $170 million for the share package.
The deal was intended to strengthen ties between Lordstown and Foxconn electronics platform MIH. “There will also be opportunities in the future to share Lordtown’s technical resources with other customers,” Foxconn said.
The Taiwanese company took over a factory in Lordstown in the US state of Ohio in September and builds pick-up trucks there. This ensured that Lordstown got the money needed to produce the Endurance model. Lordstown CEO Edward Hightower said his company and Foxconn are also considering producing cars for other brands.
Electromobility offensive at the iPhone manufacturer
Foxconn has – see link box – expanded its electromobility activities enormously in recent years. The company is the world’s largest contract manufacturer of electronics and hopes to build on this business model. However, authorities have yet to approve entry to Lordstown.
In the quarter, the electric pickup truck maker made a loss of $154.4 million, a good half more than a year ago. The company is struggling with the sharp rise in raw material prices. On Monday, the company said material costs for the Endurance model were above the target price. In order to limit losses, production must be limited to at least 2023.
Source: Krone
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
