Foxconn is divesting its land and manufacturing plant in Lordstown, Ohio, for about $375 million, signaling a major strategic pivot from electric vehicle manufacturing to artificial intelligence.
The company said in a stock exchange filing on Monday that the sale would generate an estimated disposal gain of $170 million.
Foxconn acquired the facility, formerly owned by General Motors, from Lordstown Motors in 2022. However, the partnership with Lordstown Motors later unraveled amid weakening demand for electric vehicles and a surplus of manufacturing capacity in North America.
“The overall EV industry is too weak. The North American EV industry capacity is much larger than the actual market demand at this moment. A move to revitalize the Lordstown facility was necessary,” a person close to Foxconn told Nikkei Asia.