Mystery Buyer Acquires Former GM Factory Previously Owned by Foxconn Following Unsuccessful Electric Vehicle Manufacturing Attempts
In a significant development, Foxconn Technologies Group has sold the former General Motors factory it acquired three years ago, following persistent challenges in establishing substantial electric vehicle (EV) production. This transaction represents the second major setback for Foxconn in its endeavors to bolster U.S. manufacturing, following an underperformance in a pledged LCD factory project in Wisconsin.
The sale marks the acquisition of the facility by Crescent Dune LLC, a newly-formed Delaware entity, according to state records. Matt DeWine, a Foxconn spokesperson, declined to disclose further details regarding the buyer. As per Taiwan Stock Exchange filings, the deal includes the sale of the factory and land for approximately $88 million, along with machinery and equipment from Foxconn’s EV subsidiaries valued at around $287 million.
Foxconn has asserted its continued involvement in manufacturing products for customers at the Lordstown facility, emphasizing its commitment to stakeholders within the automotive industry. However, media reports suggest a shift in focus towards AI server production at the factory. Mr. DeWine did not immediately respond to a request for comment regarding this development.
The decision to purchase the former GM plant was announced by Foxconn in 2021, with an investment of $230 million. At that time, Foxconn Chairman Young Liu described it as the “most important electric vehicle manufacturing and R&D hub in North America.” Concurrently, Foxconn embarked on EV development in Asia while pursuing contract manufacturing opportunities in the United States. However, three of the anticipated EV occupants of the factory eventually filed for bankruptcy.
Foxconn manufactured a limited number of EVs at the facility for the now-defunct Lordstown Motors. Regrettably, this collaboration culminated in a contentious dispute between the two parties, with Lordstown Motors accusing Foxconn of financial mismanagement and ultimately filing for bankruptcy in June 2023.
Additionally, Foxconn ventured into partnerships with smaller EV startups, such as IndiEV and Fisker Inc., both of which subsequently filed for bankruptcy in October 2023 and June 2024, respectively. Foxconn’s engagement with Monarch Tractor, another startup, has yielded only a few hundred electric tractors thus far. The CEO of Monarch Tractor, Praveen Penmetsa, did not respond to an emailed request for comment on the future production of these tractors in Ohio.
