Apple Supplier Foxconn Agrees to Buy Ohio Car Factory for $230 Million

Apple supplier Foxconn has agreed to buy a former General Motors factory in Ohio, a move that potentially puts it in a better position to assemble cars for Apple, should the tech giant choose to formally enter the automotive sector in the future (via Bloomberg).

bloomberg lordstown

Image credit: Dustin Franz/Bloomberg

The purchase is part of a $280 million deal Foxconn has agreed with embattled automaker Lordstown Motors, which will sell the factory to the Taiwanese company for $230 million after buying it from GM for just $20 million two years ago.

Under the terms of the deal, Foxconn will also buy $50 million worth of common stock in Lordstown Motors and will assemble the automaker's Endurance electric pickup truck. Foxconn plans to start mass producing the vehicle in April, according to Bloomberg's sources.

Foxconn said in August that it plans to begin construction of all-electric vehicle plants in the United States and Thailand this year, with the aim of being operational by 2023.

The Lordstown deal is one of Foxconn's biggest vehicle-related investments it has made over the past two years. Foxconn has yet to commercially release any vehicle following the debut of its EV platform last year, but its purchase of the Ohio plant means it won't have to build capacity from scratch, which could help the iPhone manufacturer in any attempt to court Apple's business if it enters the market, although that isn't expected for at least several years.

Apple is widely reported to be working on its own vehicle and is thought to be exploring the potential for third-party companies to help it launch the Apple Car. One report vaguely referenced Foxconn as a potential candidate for the ‌‌Apple Car‌‌'s production, but Apple is also looking at other possible suppliers.

Apple reportedly wants to ensure that the battery used in the ‌‌Apple Car‌‌ is produced in the United States, and that sentiment could extend to other auto parts, which could work in Foxconn's favor if it's able to demonstrate proof to Apple of vehicle manufacturing expertise.

Related Roundup: Apple Car

Top Rated Comments

tonywalker23 Avatar
4 weeks ago
If current software indicates how stable this car will be, will it be called “buggy”?
Score: 11 Votes (Like | Disagree)
aristobrat Avatar
4 weeks ago

Didn't Foxconn grift Michigan out of a pile of cash promising to make flat screen TV's and leave town in the dark of night like a monorail salesman from "The Simpsons"?
Wasn't that Wisconsin ('https://en.wikipedia.org/wiki/Foxconn_in_Wisconsin')?
Score: 8 Votes (Like | Disagree)
Flight Plan Avatar
4 weeks ago
Foxconn is in for a huge awakening. Northern Ohio hasn't built anything outside of a labor union since about 1735, right? Okay, I'm being facetious, but only a little.

Because the Lordstown workers are all members of the UAW local? They don't call that part of the country "the rust belt" just because they salt the roads when it snows!

I don't think Foxconn knows what a union is. Just wait until the first one comes off the line with a wrinkle in the paint or an improperly connected air bag. If the union has any urge to strike (and they often do), that car will get sold as is, right along with any that may be proven to have exploding batteries or wheels with faulty bearings, boots, or bolts.

Nobody will fix it because the union will have rules against that. Yeah, I said it; deal with it.

I know how this goes. My family and I owned and drove GM cars for decades. We kept the faith far far longer than General Motors had the right to expect. Some of us even worked for a local.

We were not in the UAW, but it's all the same; the worst performers learn how to game the system and avoid doing real work, while the people with a conscience are berated and even penalized for doing the right thing. Pick up a piece of paper so that my co-workers won't slip and fall on the greasy plant floor? No, you can't do that, there's somebody who's job is to do ONLY that thing all day. Pick up paper. Okay, but where is he? Oh, he's smoking pot in the locker room.

Finally, I had had enough of breakdowns and expensive, poorly made parts from the RenCen (GM's headquarters in downtown Detroit).

So I made my own flight plan and got out of the unions, moved away from the rust belt, and s sold off my last lemon General Motors product. I haven't driven anything from GM or Chrysler since. Everybody else (and I do mean everybody) was making a better, more reliable vehicle. Even Subaru and VW! And after a bailout (instead of a bankruptcy, which would have been the right thing to do), GM still wasn't making good products, so I haven't been back.

No, I don't lay ALL of this at the feet of the unions. But it's a big piece of it. A huge piece of it even, and Foxconn probably has no idea what they're getting themselves into.

But I could be wrong, and maybe Foxconn will bring the bigger hammer. In that case, then maybe the unions will be in for a huge awakening and we'll see some real change in quality coming from the automotive industry.

Either way, this should be fun to watch, so I plan to pop some popcorn for this show. The unfortunate side-effect of course, is that anything Foxconn makes or assembles, whether for Apple or anybody else, will probably just become even more expensive. We'll have to see how this all susses out.
Score: 4 Votes (Like | Disagree)
Sweetfeld28 Avatar
4 weeks ago
Very sad to see that plant mostly sitting idle when I drive by occasionally for work... glad it was bought by a company that hopefully will make use of all that property.
Score: 4 Votes (Like | Disagree)
IIGS User Avatar
4 weeks ago
Didn't Foxconn grift Michigan out of a pile of cash promising to make flat screen TV's and leave town in the dark of night like a monorail salesman from "The Simpsons"?

Side note. The days of cheap manufacturing in China are coming to a close. Energy supply issues. You know when it hits CNN and CNBC it was happening in China 6 months ago, so maybe the US will be a more viable place to complete assembly, IDK.
Score: 4 Votes (Like | Disagree)
IllinoisCorn Avatar
4 weeks ago
Important for that town.
Score: 3 Votes (Like | Disagree)

Related Stories

Foxconn Office

Apple Supplier Foxconn to Begin Building Electric Vehicle Factory in the U.S. Next Year

Thursday August 12, 2021 4:59 am PDT by
Foxconn, one of Apple's largest suppliers, has said it will begin construction of all-electric vehicle plants in the United States and Thailand this year, with hopes of them being operational by 2023, according to a report from Nikkei Asia. From the report: Foxconn, the world's largest contract electronics producer, on Thursday said it will build electric vehicle manufacturing facilities...
Apple car wheel icon feature purple

Apple Supplier Foxconn Eager to Break Into Electric Vehicle Manufacturing

Thursday August 19, 2021 2:23 pm PDT by
Apple supplier Foxconn is making a major push into electric vehicle manufacturing and has long been aiming to get into the vehicle market, according to a new profile of Foxconn's car ambitions that was shared by Nikkei. "If we can make iPhones, why can't we make EVs?" Foxconn founder and former chairman Terry Gou said in an internal meeting. "It is an iPhone with four wheels." Foxconn has ...
Untitled

Foxconn Offers 'Record-High' Bonuses to Recruit Workers for iPhone 13 Assembly

Tuesday June 22, 2021 7:29 am PDT by
Apple's largest manufacturing partner Foxconn is offering "record-high" signing bonuses in an effort to recruit workers for iPhone 13 production over the next few months, according to the South China Morning Post. ‌iPhone 13‌ Pro in Matte Black render via EverythingApplePro The report claims Foxconn is offering up to 8,000 yuan ($1,235) as a signing bonus to former workers willing to return...
foxconniphone12

Profit Margin Tensions Souring Relationship Between Apple and Foxconn

Tuesday October 27, 2020 11:48 am PDT by
The relationship between longtime partners Apple and Foxconn is eroding due to a battle over profit margins, according to a new report from The Information. While Apple's gross profit margins are close to 40 percent, Foxconn's profit margins are in the single-digit percentage points, leading Foxconn to employ questionable tactics in an effort to grow its profits. For manufacturing projects,...
Apple car wheel icon feature triad

Apple Reportedly Aiming to Manufacture Apple Car Batteries in the United States

Monday July 12, 2021 10:25 pm PDT by
Apple aims to manufacture the batteries that will be used in its autonomous vehicle in the United States, rather than sourcing them from suppliers in other countries, according to a new report from DigiTimes. From the report: Apple, which reportedly is mulling manufacture batteries for Apple Car in the US, may work with Taiwanese makers rather than Chinese ones, according to industry...
Apple car wheel icon feature purple

Apple Car Battery Talks Stall in Another Blow to Electric Vehicle Project

Friday October 22, 2021 6:49 am PDT by
Apple's negotiations with the Chinese companies CATL and BYD about supplying batteries for its rumored electric vehicle have mostly stalled, Reuters reports. According to three individuals said to have knowledge of the discussions between Apple and the Chinese firms, the talks reached an impasse when CATL and BYD refused to set up teams dedicated to Apple and manufacturing plants in the...
apple park drone june 2018 2

Apple Hires Two Former Mercedes Engineers to Join Special Projects Group as Apple Car Rumors Increase

Friday September 3, 2021 9:25 am PDT by
Apple has hired two former Mercedes engineers to join the company, likely as part of its effort to continue to build out its internal workforce as the development of an "Apple Car" continues. The leading new hire previously worked at Mercedes, focusing on mass production of vehicles, vehicle steering, dynamics, and software and project management. The hire, now working as a product design...
Apple car wheel icon feature purple

Apple Reportedly in Talks With Toyota About Apple Car Production Starting 2024

Thursday September 2, 2021 4:33 am PDT by
Apple is rumored to be in Asia visiting Toyota as it prepares to lay the supplier groundwork to mass produce a branded car by 2024, according to a new report by DigiTimes. Apple representatives were said to have met with South Korea's SK Group and LG Electronics last month to discuss Apple Car development, and now Japan's Toyota is being touted as its next potential destination. Apple...
china floods foxconn

iPhone Supplier Foxconn Says China Floods Not Impacting Operations

Wednesday July 21, 2021 1:12 am PDT by
Apple supplier Foxconn, which is Apple's largest and most important supplier for the iPhone, has said that torrential floods that have hit the Henan province in China, where it houses its main iPhone production plant, have not been impacted operations. Photo credit to China News Service (via Focus Taiwan) In a statement to CNBC, Foxconn says that its main factory in Zhengzhou, the capital of ...
applelexusselfdriving1

Apple Self-Driving Car Needed a Realignment After Clipping Curb in Autonomous Mode

Tuesday October 12, 2021 10:52 am PDT by
One of Apple's self-driving test vehicles was involved in a minor incident on September 27, according to a filing made with the California DMV [PDF]. The self-driving vehicle, which was operating in autonomous mode at the time, clipped a curb while going 13 miles per hour. There was no damage reported, but the car did require a realignment.A test vehicle, operating in autonomous mode in...