Taiwan’s Foxconn, finest often known as the producer of the iPhone, is now within the automotive manufacturing enterprise.

Lordstown Motors on Wednesday mentioned the $230 million deal introduced within the fall to promote its sprawling 6.2 million-square-foot plant to Foxconn has closed.

The deal transfers to Hon Hai Know-how Group — which trades below the Foxconn identify — possession of the previous Common Motors plant in Ohio together with 400 Lordstown manufacturing workers and the accountability for assembling the battery-electric Endurance, a pickup roughly the dimensions of the Chevrolet Silverado.

The sale successfully ends Lordstown Motors’ existence as an automaker and transitions the EV startup to turning into a product growth and engineering outfit. Foxconn additionally mentioned it’s investing $100 million to create a three way partnership affiliate that can work with Lordstown to engineer EVs based mostly on Foxconn’s in-house developed platforms often known as Mobility-in-Concord.

“Now we have about 250 engineers, product growth individuals principally in Farmington Hills [Mich.] and Irvine [Calif.]. Now we have buying, high quality, all the pieces however manufacturing,” Lordstown CEO Daniel Ninivaggi instructed Automotive Information.

The injection of money from the deal may not be sufficient to make sure manufacturing of the Endurance begins on schedule this fall, Ninivaggi mentioned. The corporate is working to boost a further $150 million so it may possibly preserve its deliberate third-quarter begin of restricted manufacturing.

Lordstown this week reported its first-quarter loss narrowed to $89.6 million from a lack of $125.2 million a yr earlier. It had a money steadiness of $204 million, in contrast with $587 million a yr earlier. It had obtained $200 million in down funds for its property from Foxconn.

Even when the Endurance is delayed and even canceled, the Foxconn deal has implications past the truck. Fisker Inc., headed by designer Henrik Fisker, is already taking deposits for an reasonably priced EV, code-named Pear, that’s supposed to be a high-volume mannequin. Fisker says the Pear might be constructed on the Lordstown plant.

Additionally, Foxconn’s sturdy ties to Apple might finally see the Taiwanese firm manufacturing autos designed by the buyer electronics big at Lordstown. Apple’s automotive intentions have been shrouded in secrecy, however plans look like transferring ahead. Final week, Apple employed away a senior govt from Ford.

Foxconn and Lordstown Motors have spotty data for assembly targets and deadlines. Foxconn in 2017 gained main concessions from Wisconsin to construct a $10 billion LCD display plant in Mount Nice, close to Kenosha, that may make use of 13,000. It ended up opening a a lot smaller facility and doesn’t say what it makes there.

Lordstown has been beset by typical EV startup issues involving important money wants, delays and technical points. The corporate additionally has seen govt churn associated to inflated claims for orders of the Endurance.

“I’ve numerous religion in Foxconn’s technique,” Ninivaggi mentioned. “Something in automotive is troublesome, however they’ve the conviction. They’re making investments everywhere in the world. Foxconn appears at autos the best way tech corporations take a look at autos as platforms. And the innovation is more and more within the software program. And no one is healthier at software program and {hardware} integration than Foxconn.”