"Wednesday evening, Lordstown (ticker: RIDE) announced the company closed its deal with Hon Hai Precision Industry (2317.Taiwan), which is better known as Foxconn. Lordstown is selling its Ohio plant to Foxconn. Foxconn will operate the facility and build Lordstown’s EVs." - Barron's, May 11, 2022.
This development brings much needed funds to Lordstown Motors. And Northeastern Ohio has its hope restored. At least somewhat.
After GM shuttered the Chevy Cruze plant, which had run on three shifts, the region was economically devastated. Unlike Pittsburgh, Pennsylvania, the Youngstown Metro area didn't diversify after the collapse of the steel industy. In contrast, Pittsburgh nurtured three niches: higher education, tech, and healthcare.
If EV startup Lordstown Motors caught on it could keep creating jobs. However, it has been hit hard with problems, including government scrutiny. In terms of the market, the EV one is crowded. And established auto companies such as Ford have a distinct advantage over a small inexperienced player such as Lordstown Motors.
Time will tell if Lordstown Motors is an economic savior or another disappointment in the Ohio Valley.
Connect with Editor-in-Chief Jane Genova at janegenova374@gmail.com.
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