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).
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.