Lordstown Motors Corp is near an agreement to sell its Ohio car plant to Taiwan’s Foxconn Technology Group after owning it less than two years.
The companies are set to announce the deal as soon as this week, sources say.
Lordstown Motors struck a deal with GM in late 2019 to buy the plant the automaker had founded in 1966.
The sale would help Lordstown Motors raise cash and realize the benefits of large-scale manufacturing much faster by building multiple models in the same facility.
For technology giant Foxconn, a partner of Apple Inc., the plant represents the first automotive manufacturing footprint in the U.S. as the company accelerates a push into electric vehicles.
Selling the plant and operating in parallel with Foxconn could make sense for Lordstown Motors.
The company is working to get its Endurance pickup truck ready for production. Even if the truck finds customers, it is still a challenge for Lordstown Motors to fully utilize the entire plant.
The Ohio facility was engineered to build well more than 300,000 of the now-defunct Chevrolet Cruze compact car per year, before GM stopped building the vehicle in March 2019.
Lordstown Motors stepped in to purchase the facility after GM decided to shut it down.
Lordstown Motors has had to re-establish its footing after ousting founder Steve Burns in June amid claims that he overstated future sale orders.
The company has been under investigation by the Securities and Exchange Commission and the Justice Department after an internal probe concluded that prior management had misstated preorders for the Endurance.