Foxconn sells former GM factory to mystery buyer after failing to make EVs

Core Insights - Foxconn has sold the former GM factory after failing to establish significant electric vehicle production, marking a second major setback in its efforts to revive U.S. manufacturing [1] - The factory and land were sold for approximately $88 million, with machinery and equipment from its EV subsidiaries sold for around $287 million [2] Group 1: Factory Sale and Financials - The buyer of the factory is Crescent Dune LLC, a newly created entity in Delaware [2] - Foxconn initially purchased the factory for $230 million in 2021, intending to make it a key electric vehicle manufacturing hub in North America [4] - The total sale price for the factory and equipment amounts to $375 million [2] Group 2: Manufacturing Plans and Challenges - Despite the sale, Foxconn claims it will continue to manufacture products for customers at the Lordstown facility and remains committed to the automotive industry [3] - Reports indicate that Foxconn plans to shift focus to building AI servers at the factory [3] - Foxconn faced significant challenges with multiple electric vehicle companies it partnered with, all of which went bankrupt, including Lordstown Motors and IndiEV [4][7] Group 3: Bankruptcy Issues - Lordstown Motors filed for bankruptcy in June 2023, accusing Foxconn of financial mismanagement [7] - IndiEV also filed for bankruptcy in October 2023, with minimal funds remaining [7] - Fisker Inc, another company Foxconn was supposed to build EVs for, filed for bankruptcy in June 2024 [7]