Foxconn Should Put a Higher Value on Its US Reputation
Quibbling over the small Lordstown transaction risks a far bigger cost to the Taiwanese company as it seeks to build better ties with American clients.
Not a good brand-building exercise.
Photographer: Ashley Pon/BloombergThree days. That's how long it takes Foxconn Technology Group to make $47 million in net income, the amount of cash it reneged on paying Lordstown Motors Corp. for a chunk of stock. Now, the Ohio-based EV startup has filed for bankruptcy and is seeking to sell assets related to its Endurance electric pickup. The damage to the Taiwanese electronics giant could be much higher.
This saga began more than a year ago when Foxconn, better known for making Apple Inc.’s iPhones, bought a former General Motors Co. factory in Ohio from Lordstown. The $230 million transaction turned that facility into the Taipei-based company’s North American electric-vehicle hub and included a deal to jointly develop Lordstown cars.