Why Foxconn Sold Its U.S. EV Factory After Repeated Setbacks
Foxconn’s decision to sell the former General Motors factory in Lordstown, Ohio, has reignited conversation around the company’s troubled electric vehicle (EV) strategy in the United States. The move marks the end of a three-year attempt to turn the facility into a major EV production hub—a goal that never truly materialized. Foxconn sells EV factory to a mysterious buyer following multiple failed partnerships, bankrupt collaborators, and unmet manufacturing promises. For many, this sale confirms what industry watchers have long suspected: the tech giant’s ambitious pivot to EV manufacturing in the U.S. was a misfire from the start.
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Foxconn Sells EV Factory: A Deal Marked by Secrecy
The factory Foxconn just offloaded was once owned by EV startup Lordstown Motors, acquired by Foxconn in 2021 for $230 million. Hopes were high then. The company claimed it would transform the site into its electric vehicle manufacturing and research headquarters for North America. But after several false starts and evaporating partnerships, the plant never reached full-scale production. According to filings, Foxconn sold the EV factory and surrounding land for approximately $88 million, while machinery and equipment tied to its EV subsidiaries went for around $287 million.
What raises eyebrows is the buyer—an entity called Crescent Dune LLC, created in Delaware just 12 days before the deal closed. Officially referred to as an “existing business partner,” little is publicly known about the company or its intentions. Foxconn has confirmed only that it will remain involved in some capacity at the Lordstown site, hinting at a shift to manufacturing AI servers rather than vehicles. Yet this pivot remains unconfirmed, adding a layer of mystery to an already opaque transaction.
A Trail of Bankrupt EV Partners
Foxconn’s failure wasn’t solely due to its own actions—it was also dragged down by a series of ill-fated collaborations. Initially, the factory was supposed to serve as the production home for Lordstown Motors’ Endurance pickup truck. But Lordstown filed for bankruptcy in mid-2023 after accusing Foxconn of sabotaging its business. That episode not only soured relations but revealed deep structural problems in both companies’ strategies.
The fallout didn’t stop there. Foxconn struck agreements with IndiEV, a small startup with plans for an electric SUV, and with Fisker Inc., known for its ambitious Ocean SUV. Both companies ultimately filed for bankruptcy—IndiEV in October 2023 and Fisker in June 2024—before any significant production could occur. Another would-be partner, Monarch Tractor, did manage limited assembly of electric tractors at the site. However, the scale remained minuscule, with only a few hundred units reported. Despite high hopes, the Foxconn EV factory sale has effectively closed the door on a dream that struggled to survive from the beginning.
What This Means for the Future of U.S. EV Manufacturing
Foxconn’s exit from Lordstown carries broader implications for the U.S. electric vehicle sector. The company once promised to reinvigorate American manufacturing by bringing high-tech jobs and innovation stateside. But the pattern that’s emerged—from the abandoned LCD factory project in Wisconsin to the failed EV ventures in Ohio—raises serious questions about its long-term commitment to U.S.-based industrial initiatives.
Instead of becoming a leader in contract EV production, Foxconn now seems to be redirecting focus toward data center technologies, such as AI server production. This realignment could reflect shifting market dynamics, where the risks and capital demands of EV manufacturing outweigh the benefits. Still, Foxconn selling its EV factory is seen by many as a retreat rather than a reinvention.
For communities like Lordstown, the story is all too familiar. Promises of transformation, headlines filled with hope, and ultimately, disappointment. As Crescent Dune LLC takes the reins, locals and industry insiders alike are left wondering: will this be a fresh start or just another chapter in a factory’s long history of unfulfilled potential?
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