Lordstown (RIDE) Nears Deal to Sell Ohio Plant - Bloomberg

Bloomberg reported today that Lordstown Motors Corp. (NASDAQ: RIDE) is close to a deal to sell its highly politicized Ohio factory to Taiwan’s Foxconn Technology Group. According to people familiar with the deal, the companies are set to announce the pact as soon as this week. They didn’t disclose the value of the transaction.

GM’s decision in 2018 to close the plant was a blow to then-President Donald Trump, who a year earlier discouraged rally-goers from selling their homes because of all the jobs he vowed to bring back.

Lordstown Motors has had to re-establish its footing after ousting Steve Burns, its founder and chief executive officer, in June over misstatements he made about Endurance orders.

Burns’s successor, CEO Dan Ninivaggi, said in an interview last month that he was looking for partners to help the company take full advantage of the plant.

“The key to unlocking financial potential is maximizing the value of the Lordstown facility,” Ninivaggi said at the time. “We are exploring a number of alternatives. It could take a number of different forms. That is job one for me.”

Lordstown Motors shares rose as much as 8.4% to $7.98 before the start of regular trading Thursday. The company has lost almost three-quarters of its market value over the last year.

By Michael Elkins | [email protected]

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