04 Oct 2021
Posted in Automotive
Foxconn EV production plan back in motion with Lordstown Motors’ Ohio plant acquisition, says GlobalData
Following the news that Taiwanese iPhone maker Foxconn acquires Lordstown Motors’ Ohio electric vehicle (EV) factory for $230m;
Bakar Sadik Agwan, Senior Automotive Consulting Analyst at GlobalData, a leading data and analytics company, offers his view:
“The acquisition is a milestone for Foxconn’s US EV ambition which came to a standstill with uncertainty looming over the company’s Wisconsin’s manufacturing plant. The purchase of Lordstown Motors’ manufacturing site, which was a GM plant till 2019, will be a turnkey solution for Foxconn’s EV manufacturing that will give it hand-off experience in the area. It indicates that a ready plant will garner ‘quick learning’ with ‘less investments’. The GM plant had a capacity to turn around up to 300K units annually, thus provide significant room for Foxconn to expand its capacity in the future.
“The deal is a win-win situation for both the parties. Lordstown Motors, which was in deep financial crunch and legal scrutiny recently, will revive with the fresh cash inflow from Foxconn. Lordstown Motors will leverage Foxconn’s technology, manufacturing and supply chain expertise to manufacture its Endurance pick-up truck for the US market.
“As per GlobalData Automotive Intelligence Centre, the ex-GM plant had logged a production capacity of 58K units in 2019. Foxconn may aim 50K annual production – similar to what it committed in its Thailand plant – and expand in later years.
“With the deal, Foxconn may lead ahead of its schedule to manufacture EVs in the US by 2023-end. Foxconn has been negating complexity in EV manufacturing and supply with its partnerships and vertical integration across the value chain. However, it will have to compete with the likes of Tesla, GM and Ford in the US which aims front row in the domestic EV market.”