LORDSTOWN – Manufacturing Fisker Inc.’s second electric vehicle offering, PEAR, in Lordstown will require hundreds of millions of dollars to equip and equip the auto manufacturing plant there, said the chief executive of Fisker.
The PEAR (Personal Electric Automotive Revolution) would require its own production line at the plant, now owned by electric vehicle startup Lordstown Motors Corp., which has an agreement in principle to sell the 6.2 million foot facility. squares to a Taiwanese tech company, Foxconn.
Foxconn finalized a deal in May with California-based Fisker to assemble the vehicle.
Now Foxconn and Lordstown Motors are negotiating a definitive deal whereby Lordstown Motors would sell the plant for $ 230 million and Foxconn would become the contract manufacturer of Lordstown Motors’ flagship vehicle, Endurance.
“If Foxconn does eventually acquire Lordstown and the deal goes through, we intend to do PEAR with Foxconn in Lordstown”, Fisker CEO Henrik Fisker said.
Because the PEAR is smaller than the Endurance, is uniquely assembled, and would be assembled at a higher volume than the Endurance, it would require a separate production line, Fisker said. He was hesitant to say on Monday how much would be spent to retool the facility, but said Fisker’s deal with Foxconn, best known for making Apple iPhones, calls for the two companies to share the investment and the profits.
“We would need to build our own assembly line and probably our own assembly line etc., and also because the volume is much higher, I don’t know what theirs is, but I think it’s less than 100,000. If you build 250,000 to 300,000 PEAR vehicles, it will run at full speed ”, said Fisker.
The two companies could share some areas, like inbound logistics and the paint booth, for example, which would reduce costs, Fisker said.
The Foxconn / Lordstown Motors deal could be concluded within the next six months. Assuming this is the case, production of the PEAR could begin as early as 2024.
“It could be, if all goes well, we could increase that a bit. “ said Fisker. “I think it’s too early to say how many.”
Fisker said the plan, based on a fresh start with an entirely new plant, was initially to produce 150,000 to 250,000 vehicles and then expand the facility later. With an existing plant, like the one at Lordstown Motors – the former General Motors assembly plant – which is built to pump 400,000 vehicles a year, it becomes a matter of demand for PEAR, Fisker said.
If the demand is there for a vehicle priced under $ 30,000 with no incentives, “Sky is the limit.”
The plan would also include a second PEAR-based model that would be needed to reach the number of several hundred thousand production vehicles.
Lordstown Motors announced in August that it was seeking partners for the plant, which was acquired for $ 20 million from GM in November 2019 after GM closed it a few months earlier.
The company has invested millions in the plant to modernize it and produce battery-powered vehicles. But he only uses about 30 percent of the facility and has raised capital to increase production.
Lordstown Motors and Foxconn jointly announced the deal on Thursday. He also calls on Foxconn to invest $ 50 million in Lordstown Motors. In addition, the two companies have agreed to explore licensing agreements and additional truck programs, and Lordstown Motors has agreed to enter into a long-term lease for a portion of the existing facility for its Ohio-based employees, Foxconn offering employment to select operations and manufacturing. workers.
Lordstown Motors will continue limited production of Endurance for testing, validation and regulatory approvals for the remainder of 2021 and the first part of 2022.