Foxconn buys Ohio plant to build electric vehicles, Wisconsin plant’s future uncertain
MOUNT PLEASANT – Foxconn has chosen an assembly plant in Ohio for the initial production of electric vehicles in the United States, while claiming that its complex in Racine County is a “potential” site for future investment in the automobile manufacturing.
Foxconn on Thursday announced plans to buy a production and assembly plant from Lordstown Motors Corp. in Lordstown, Ohio, to help the Taiwanese conglomerate build electric vehicles for start-up automaker Fisker. Foxconn and Fisker announced in February that they had reached an agreement to manufacture the vehicles.
But the companies did not say when these vehicles would be manufactured, and some were hoping Foxconn would use its existing Wisconsin facility – originally designed to build television screens – as a production site for electric vehicles.
The deal with Fisker stipulates that Foxconn would build more than 250,000 of these vehicles each year, with production scheduled to begin in Q4 2023. The vehicles would be sold in North America, Europe, China and India.
On Thursday, Foxconn announced that it had entered into a non-binding agreement to purchase Lordstown Motors’ 6.2 million square foot production and assembly plant in Lordstown for $ 230 million, according to their original agreement.
Lordstown attempted to start production of an all-electric pickup called “Endurance” at the factory. But it seems that the company lack of money.
“The existing automotive manufacturing facilities, infrastructure, employees and location in Ohio with robust supply chain resources will give Foxconn a speed to market that will meet the production needs of our customers. ‘by the end of 2023,’ a spokesperson said.
But Foxconn says there is still potential for similar electric vehicle efforts in Racine County.
“Foxconn’s Wisconsin assets will continue to serve as a potential site for additional investment for Foxconn’s electric vehicle growth in the United States,” the spokesperson said. The company adds that the Racine County facility will continue to be the location for “production of data infrastructure and information and communications technology equipment.”
Foxconn originally planned to build a Gen 10 LCD facility to produce large displays in Mount Pleasant after former Governor Scott Walker offered more than $ 3 billion in tax incentives. But this project was reduced to a Gen. 6 to build smaller screens for phones, televisions and tablets.
Since then, Foxconn has come under fire for failing to deliver on its promise to create 13,000 local jobs as local and state governments spend hundreds of millions of dollars to usher in what was initially seen as a possible resurgence of manufacturing in the ‘State.
Then last October, the Wisconsin Economic Development Corp. announced that Foxconn did not qualify for the $ 4 billion in local and state tax incentives. The DEO concluded that the company had not hired enough employees or made enough investments in the Mount Pleasant facility, per the agreement the company signed with former Governor Walker.
Foxconn says it has hired more than 530 full-time employees and invested $ 750 million in the facility.
The deal with California-based Fisker would mark Foxconn’s first foray into vehicle production. Foxconn is the world’s largest electronics supplier and a major supplier of iPhones.
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