Signed Manufacturing and Joint Venture Agreements for Product Development with Lordstown Motors,
Gaining More Talented Employees and Targeting More EV OEM Clients
12 May 2022, Taipei, Taiwan / Lordstown, Ohio. Hon Hai Technology Group (“Foxconn”) (TWSE: 2317), the world’s largest technology manufacturer and service provider, and Lordstown Motors Corp. (“Lordstown Motors” or “LMC”) (Nasdaq: RIDE), an OEM of electric light-duty trucks focused on the commercial fleet market, have announced today the signing of a contract manufacturing agreement and a joint venture agreement for product development.
As previously disclosed on Nov 11, 2021, Hon Hai and Lordstown entered into an Asset Purchase Agreement (APA) regarding LMC’s production plant in Lordstown, Ohio. The transaction and asset transfer were in progress and was approved by regulatory authorities. On May 12, 2022, Hon Hai announced the completion of the facility purchase. In the future, Ohio will be Hon Hai’s important electric vehicle manufacturing hub in North America.
After the facility transfer completion, there will be approximately four hundred skilled and talented LMC employees that will transition to employment with Hon Hai. By collaborating with different automotive OEMs, Hon Hai will offer its employees in North America exciting and challenging opportunities to develop their career paths in the field of electric vehicles.
The signed contract manufacturing agreement and joint venture agreement for product development is a key milestone for Hon Hai. Hon Hai invests $55 million in the new joint venture and holds 55% of shares. According to the joint venture agreement, Hon Hai and Lordstown will use the Mobility in Harmony (MIH) Open EV Platform to co-design and develop vehicle programs for the global commercial vehicle market. By sharing expertise and integrating resources, the two parties will be able to help the OEMs in the supply chain to effectively and efficiently reduce Time to Market and Time to Cost, achieving the benefits of scale.
With its expertise in hardware software integration and production management of electronics manufacturing, Hon Hai will leverage Lordstown team’s automaking experience and bring the electric pickup truck “Endurance” into mass production. The collaboration between Hon Hai and Lordstown is a classic example of joint effort between startup electronic vehicle manufacturer and information & communications service provider.
About Hon Hai
Established in 1974 in Taiwan, Hon Hai Technology Group (“Foxconn”) (2317: Taiwan) is the world’s largest electronics manufacturer. Hon Hai is also the leading technological solution provider, and it continuously leverages its expertise in software and hardware to integrate its unique manufacturing systems with emerging technologies. Hon Hai has expanded its capabilities into the development of electric vehicles, digital health, and robotics, and three key technologies – new-generation communications technology, AI, and semiconductors – which are key to driving its long-term growth strategy.
In addition to maximizing value-creation for customers who include many of the world’s leading technology companies, Hon Hai is also dedicated to championing environmental sustainability in the manufacturing process and serving as a best-practices model for global enterprises.
To learn more, visit www.honhai.com
About Lordstown Motors Corp.
Lordstown Motors is an electric vehicle (EV) innovator developing high-quality light duty commercial fleet vehicles, with the Endurance all electric pick-up truck as its first vehicle being launched in the Lordstown, Ohio facility. Lordstown Motors has engineering, research and development facilities in Farmington Hills, Michigan and Irvine, California. For additional information visit www.lordstownmotors.com.