LORDSTOWN, Ohio — Lordstown Motors is reportedly near a deal to sell its plant.
Bloomberg is reporting that Taiwan’s “Foxconn Technology Group” is buying the former General Motors factory.
So what does this mean for the future of the village in Trumbull County that was once a staple in the automotive industry?
“We’re in the wait and see mode," says Lordstown Mayor Arno Hill.
Hill is optimistic, but details into the deal are limited and Lordstown Motors is not commenting at this point.
"We look forward to sitting down if this does go through. I’m not sure if they’ll ink it tomorrow, next week or next year, but we’re very optimistic," Hill adds.
Foxconn is the world’s largest electronics manufacturer and a supplier to companies like Apple. It had previously announced a $10 billion investment in Wisconsin to make TV screens but the deal didn’t go through.
For Lordstown Motors, it’s been a bumpy ride. They’ve been dealing with a number of issues since the company bought the former General Motors plant two years ago. Less than a week after Lordstown Motors said the company may not be able to continue operations, the CEO and CFO resigned from their leadership roles. Later in July, the company did get a boost by announcing a private equity firm had invested $400 million.
"If you look at the checklist, funding was probably at the top," says Hill. "It looks like the funding issue is resolved if this goes through."
Back in June, Lordstown Motors gave a tour of its plant --- and rides in prototypes of its “Endurance” trucks. Officials said then they would plan to begin building trucks in September and deliver the first ones to commercial customers in December.
There is no word on the potential value of the deal between Foxconn and Lordstown Motors. In Bloomberg’s latest report, official news of the deal could be released as early as this week.
U.S. Senator Sherrod Brown (D-OH) and Rep. Tim Ryan (D-OH) both weighed in on the news of a possible deal between Lordstown Motors and Foxconn.
“Lordstown Motors Corporation arrived in the Mahoning Valley with promises of jobs and economic growth. I have asked LMC to explain theirs plans for Lordstown and its workers and I am still waiting. The hard-working men and women of the Mahoning Valley don’t just deserve answers – they need them. Going forward, there are two key questions for LMC and Foxconn: what does this mean for jobs in Lordstown? What are their plans to ensure that the Mahoning Valley is a leader in electric vehicle production? I expect to meet with LMC and hear their plans in the coming days. I look forward to learning about Foxconn and their plans for Lordstown,” said Brown.
“I am closely following reports that Foxconn may be purchasing the former GM Lordstown plant and look forward to learning more from Lordstown Motors and Foxconn on their plans for the facility. I plan to meet with company officials soon to discuss what this decision means for jobs in our community and how it will help the Mahoning Valley remain a leader in electric vehicle production. We deserve answers,” added Ryan.
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