Saving Grace
10月前
Although Foxconn sold the factory and machinery, the company will still operate in the Lordstown facility under Crescent Dune’s ownership. “Foxconn will be involved in the manufacturing of products for customers at the Lordstown facility,” the company said. “The U.S. is a key automotive market, and we are committed to customers and suppliers in this market. Foxconn will be able to rapidly ramp up automotive production to meet customer demand when required.”
Foxconn is recommitting to its investment in the U.S. market. “[Lordstown] is an important part of the company’s footprint in the United States,” it said. “The decision to sell the facility is part of the company’s plan to expand into new business areas.”
GM shut down the Lordstown assembly plant, which used to assemble the Chevy Cruze, in 2019. It was briefly owned by the now-bankrupt Lordstown Motors before being acquired by Foxconn in 2022. Foxconn said this Spring that it has a U.S. client that will start selling its Model C electric crossover this year, but the company declined to name the partner.
Model C is the internal name Foxconn uses for the crossover currently marketed in Taiwan as the Luxgen n7. It’s the Asian country’s second-best-selling EV behind the Tesla Model Y. The n7 is a single-motor, RWD EV for now, but a dual-motor, AWD version has been shown as a prototype.
Even if the Lordstown facility moves forward with producing electric cars, it’s unlikely that we’ll see Foxconn-branded cars in the U.S. or anywhere else. The company prefers to do contract work and joint ventures rather than market its own products to the public. “Foxconn has never done its own branding,” Taiwan-based EV consultant Jack Cheng told Automotive News. “And they won’t inject more money until they see the market orders. That’s why they keep pushing for Mitsubishi, Nissan, whoever has a brand, to give them contract manufacturing orders. Then they will make the investment.”
Jun Seki, Foxconn's chief strategy officer for electric vehicles, seen with the Model B, has said the Taiwanese company will start delivering vehicles to a customer in the U.S. by the end of the year. (HANS GREIMEL/AUTOMOTIVE NEWS)
Foxconn, the aspiring Taiwanese electric-vehicle maker, has announced the sale of the sprawling, former General Motors Lordstown, Ohio, assembly plant it bought in 2022, saying it plans to reinvest the proceeds into expanding its U.S. business
https://www.autonews.com/manufacturing/an-foxconn-sells-lordstown-plant-hon-hai-ev-taiwan-0804/.
https://gmauthority.com/blog/2025/08/foxconn-sells-former-gm-lordstown-plant-in-ohio/
Saving Grace
10月前
Although it invested $26 million in the facility earlier this year, Taiwanese tech giant Foxconn has sold the former GM Lordstown assembly plant in Ohio, according to Automotive News. Foxconn’s business partner, Crescent Dune, LLC, bought the land and buildings for $88 million. Additionally, Crescent Dune bought machinery and equipment for EV production from Foxconn in two batches for a total of $287 million.
Although Foxconn sold the factory and machinery, the company will still operate in the Lordstown facility under Crescent Dune’s ownership. “Foxconn will be involved in the manufacturing of products for customers at the Lordstown facility,” the company said. “The U.S. is a key automotive market, and we are committed to customers and suppliers in this market. Foxconn will be able to rapidly ramp up automotive production to meet customer demand when required.”
Foxconn is recommitting to its investment in the U.S. market. “[Lordstown] is an important part of the company’s footprint in the United States,” it said. “The decision to sell the facility is part of the company’s plan to expand into new business areas.”
GM shut down the Lordstown assembly plant, which used to assemble the Chevy Cruze, in 2019. It was briefly owned by the now-bankrupt Lordstown Motors before being acquired by Foxconn in 2022. Foxconn said this Spring that it has a U.S. client that will start selling its Model C electric crossover this year, but the company declined to name the partner.
Model C is the internal name Foxconn uses for the crossover currently marketed in Taiwan as the Luxgen n7. It’s the Asian country’s second-best-selling EV behind the Tesla Model Y. The n7 is a single-motor, RWD EV for now, but a dual-motor, AWD version has been shown as a prototype.
Even if the Lordstown facility moves forward with producing electric cars, it’s unlikely that we’ll see Foxconn-branded cars in the U.S. or anywhere else. The company prefers to do contract work and joint ventures rather than market its own products to the public. “Foxconn has never done its own branding,” Taiwan-based EV consultant Jack Cheng told Automotive News. “And they won’t inject more money until they see the market orders. That’s why they keep pushing for Mitsubishi, Nissan, whoever has a brand, to give them contract manufacturing orders. Then they will make the investment.”
Jun Seki, Foxconn's chief strategy officer for electric vehicles, seen with the Model B, has said the Taiwanese company will start delivering vehicles to a customer in the U.S. by the end of the year. (HANS GREIMEL/AUTOMOTIVE NEWS)
Foxconn, the aspiring Taiwanese electric-vehicle maker, has announced the sale of the sprawling, former General Motors Lordstown, Ohio, assembly plant it bought in 2022, saying it plans to reinvest the proceeds into expanding its U.S. business
https://www.autonews.com/manufacturing/an-foxconn-sells-lordstown-plant-hon-hai-ev-taiwan-0804/.
https://gmauthority.com/blog/2025/08/foxconn-sells-former-gm-lordstown-plant-in-ohio/
Congrats Longs! 51 total. It's going to be a wild Ride!
Saving Grace
11月前
Sounds like LMC/NU Ride Inc. has plant back.
LORDSTOWN, Ohio — For the last several years, the name Foxconn has greeted motorists driving along I-80 through Lordstown. It's the name of the Taiwanese company that owns the former GM Assembly plant and utilizes part of the space in its manufacturing endeavors. That will soon end, the ownership part, not the occupancy. Foxconn announced this week it has sold the 6.2 million square feet plant to a newly formed company out of Delaware.
"Foxconn will continue to occupy the Lordstown facility, following its sale to an existing business partner," Foxconn told News 5 in a statement. "The transaction is designed to provide greater flexibility and operational efficiency as the company positions the site for future growth. Proceeds from the sale will be reinvested in the United States, and is part of Foxconn's investments that is expected to grow exponentially. Over time, the facility is expected to support a broader range of uses, aligned with the company’s evolving strategic priorities.
"This site is an important part of the company’s footprint in the United States. The decision to sell the facility is part of the company’s plan to expand into new business areas," Foxconn's statement read.
Local business leaders believe the move will open a wide door to Foxconn's future growth.
"What we anticipate is this will mean not only will all 6.2 million square feet be put back into production, but that there would be a significant number of people working there to use all of that space," said Guy Coviello, president and CEO of the Youngstown/Warren Regional Chamber. "So we're looking forward to future announcements coming from Foxconn and its new partner, and we think this is a monumental pivotal moment for the Mahoning Valley."
The former GM Assembly Plant was for decades a symbol of America's industrial might, employing thousands of workers in good-paying jobs for generations. It was a run that President Trump predicted in a July 2017 visit to the area, which showed no sign of ending.
"Let me tell you folks in Ohio and in this area don't sell your house, don't sell your house," the president said at the time.
A year and a half later, that's what many were forced to do when GM announced they were ending production here, sending those who wanted to continue working for GM to plants across the country.
"If you go back to 2018, the holiday season was one of the gloomiest in this community's history," Coviello recalled.
New hope came in 2019 when what would eventually be Lordstown Motors took over a portion of the plant and, in 2020, began production of an all-electric pickup. Vice President Pence was among those on hand for the reveal in June of 2020, telling News 5 at the time, "Today's announcement represents a new beginning."
They had hoped to utilize the entire plant, but the venture soon failed. It was then that Foxconn stepped in, carrying forward its promise of manufacturing growth here.
"What we're seeing in some of the research is that it looks like this is moving the facility towards hardware for AI, hardware for data centers, and so that excites us too," Coviello said.
In the meantime, Foxconn's statement leaves the automotive door open.
"The US is a key automotive market and we are committed to customers and suppliers in this market. Foxconn will be able to rapidly ramp up automotive production to meet customer demand when required. In coming months, Foxconn expects to be able to share more of our strategy in these areas in the United States."
https://www.news5cleveland.com/news/local-news/foxconn-sells-former-lordstown-gm-assembly-plant-but-plans-to-stay-and-expand
https://en.wikipedia.org/wiki/Lordstown_Assembly
Foxconn was supposed to produce a variety of EVs under contract at the Ohio facility, but it has now sold the plant to a mysterious company.
Foxconn is selling the former GM plant in Lordstown, Ohio, which it purchased from failed startup Lordstown Motors in 2022.
The facility was sold to Crescent Dunes LLC, an unknown company created 12 days ago in Delaware that Foxconn oddly described as an existing business partner.
Foxconn says it will continue to be involved with production operations at the plant and has announced plans to build an electric crossover under contract for a client in North America.
https://gmauthority.com/blog/2025/08/foxconn-sells-former-gm-lordstown-plant-in-ohio/
In one of the world's most expensive games of Hot Potato, a beleaguered US auto factory is being sold yet again. The Lordstown Assembly plant, in Lordstown, Ohio, has just gotten its fourth owner since 2019. It's not clear who the new buyer is, but it seems that the seller, electronics giant Foxconn, will not be moving out. Instead, it's looking to free up some cash and try something different in the plant.
https://www.caranddriver.com/news/a65604303/foxconn-sells-lordstown-factory-promised-future-ohio-built-evs/
The Deal Is Done
Foxconn—which builds iPhones under contract for Apple, along with semiconductors and other electronic devices—bought the factory in 2022. Foxconn is now selling the site's land and buildings for $88 million to a mysterious company called Crescent Dune LLC, according to documents sent to Taiwan's stock exchange and reviewed by Automotive News.
https://www.caranddriver.com/news/a65604303/foxconn-sells-lordstown-factory-promised-future-ohio-built-evs/
1vman, this doesn't need to be pumped! Stay Humble AW
Congrats Longs! 51 total. It's going to be a wild Ride!
Saving Grace
11月前
Here we go! $NRDE It's game on.
Foxconn was supposed to produce a variety of EVs under contract at the Ohio facility, but it has now sold the plant to a mysterious company.
Foxconn is selling the former GM plant in Lordstown, Ohio, which it purchased from failed startup Lordstown Motors in 2022.
The facility was sold to Crescent Dunes LLC, an unknown company created 12 days ago in Delaware that Foxconn oddly described as an existing business partner.
Foxconn says it will continue to be involved with production operations at the plant and has announced plans to build an electric crossover under contract for a client in North America.
https://gmauthority.com/blog/2025/08/foxconn-sells-former-gm-lordstown-plant-in-ohio/
In one of the world's most expensive games of Hot Potato, a beleaguered US auto factory is being sold yet again. The Lordstown Assembly plant, in Lordstown, Ohio, has just gotten its fourth owner since 2019. It's not clear who the new buyer is, but it seems that the seller, electronics giant Foxconn, will not be moving out. Instead, it's looking to free up some cash and try something different in the plant.
https://www.caranddriver.com/news/a65604303/foxconn-sells-lordstown-factory-promised-future-ohio-built-evs/
The Deal Is Done
Foxconn—which builds iPhones under contract for Apple, along with semiconductors and other electronic devices—bought the factory in 2022. Foxconn is now selling the site's land and buildings for $88 million to a mysterious company called Crescent Dune LLC, according to documents sent to Taiwan's stock exchange and reviewed by Automotive News.
https://www.caranddriver.com/news/a65604303/foxconn-sells-lordstown-factory-promised-future-ohio-built-evs/
1vman, this doesn't need to be pumped! Stay Humble AW
Saving Grace
1年前
A reverse takeover (RTO), reverse merger, or reverse IPO is the acquisition of a public company by a private company so that the private company can bypass the lengthy and complex process of going public.[1] Sometimes, conversely, the public company is bought by the private company through an asset swap and share issue.[2] The transaction typically requires reorganization of capitalization of the acquiring company.[3]
Process
In a reverse takeover, shareholders of a private company purchase control of a public shell company/SPAC, and then merge it with the private company. The publicly traded corporation is called a "shell," since all that exists of the original company is its organizational structure. The private company shareholders receive a substantial majority of the shares of the public company and control of its board of directors. The transaction can be accomplished within weeks.[4]
The transaction involves the private and shell company exchanging information on each other, negotiating the merger terms, and signing a share exchange agreement. At the closing, the shell company issues a substantial majority of its shares and board control to the shareholders of the private company. The private company's shareholders pay for the shell company by contributing their shares in the private company to the shell company that they now control. This share exchange and change of control completes the reverse takeover, transforming the formerly privately held company into a publicly held company. Depending on the underwriters' agreements and other forward purchase agreements, the size of the company taken public in a reverse merger can exceed the market capitalization of the shell company/SPAC by a considerable amount.[5]
In the United States, if the shell is an Securities and Exchange Commission (SEC)-registered company, the private company does not go through an expensive and time-consuming review with state and federal regulators because this process was completed beforehand with the public company. However, a comprehensive disclosure document containing audited financial statements and significant legal disclosures is required by the SEC for reporting issuers. The disclosure is filed on Form 8-K and is filed immediately upon completion of the reverse merger transaction.
Benefits
Flexibility
Going public through a reverse takeover allows a privately held company to become publicly held at a lesser cost, and with less stock dilution, when compared with an initial public offering (IPO). While the process of going public and raising capital is combined in an IPO, in a reverse takeover, these two functions are separate. In a reverse takeover, a company can go public without raising additional capital. Separating these two functions greatly simplifies the process.
Resilience to market conditions
In addition, a reverse takeover is less susceptible to market conditions. Conventional IPOs are subject to risk of poor timing: if the market for a given security is "soft", the underwriter may pull the offering. If a company in registration participates in an industry that's making unfavorable headlines, investors may shy away from the deal. In a reverse takeover, since the deal rests solely between those controlling the public and private companies, market conditions have little bearing on the situation.
Expediency
The process for a conventional IPO can last for a year or more. When a company transitions from an entrepreneurial venture to a public company fit for outside ownership, how time is spent by strategic managers can be beneficial or detrimental. Time spent in meetings and drafting sessions related to an IPO can have a disastrous effect on the growth upon which the offering is predicated, and may even nullify it. In addition, during the many months it takes to put an IPO together, market conditions can deteriorate, making the completion of an IPO unfavorable. By contrast, a reverse takeover can be completed in as little as thirty days.
A 2013 study by Charles Lee of Stanford University found that: "Chinese reverse mergers performed much better than their reputation" and had performed better than other similar sized publicly traded companies in the same industrial sector.[6]
Drawbacks
Baggage
Reverse takeovers always come with some history and some shareholders. Sometimes this history can be bad and manifest itself in the form of currently sloppy records, pending lawsuits and other unforeseen liabilities.[citation needed] Additionally, these shell companies could have existing shareholders who could be anxious to sell their stock.[citation needed] One way the acquiring or surviving company can safeguard against the "dump" after the takeover is consummated is by requiring a lockup on the shares owned by the group from which they are purchasing the public shell. Other shareholders that have held stock as investors in the company being acquired pose no threat in a dump scenario because the number of shares they hold is not significant.
Fraud risk
On 9 June 2011, the United States Securities and Exchange Commission issued an investor bulletin cautioning investors about investing in reverse mergers, stating that they may be prone to fraud and other abuses.[1][7]
The 2017 documentary film The China Hustle lays out a series of fraudulent reverse mergers between private Chinese companies and U.S. publicly traded firms, with the acquiring companies often operating as a front for non-existent business activity and defrauding US investors in the process. A large part of these scams was played through small US banks willing to ignore clear warning signs when promoting these newly merged companies to the public market.[citation needed]
Other
Reverse mergers may have other drawbacks. Private-company CEOs may be naïve and inexperienced in the world of publicly traded companies unless they have past experience as an officer or director of a public company. In addition, reverse merger transactions only introduce liquidity to a previously private stock if there is bona fide public interest in the company. A comprehensive investor relations and investor marketing program may be an indirect cost of a reverse merger.[8]
Examples
The corporate shell of the REO Motor Car Company (whose sole asset was a tax loss carryover), in what amounted to a reverse "hostile" takeover, was forced by dissident shareholders to acquire a small publicly traded company, Nuclear Consultants. Eventually this company became the modern-day Nucor.[citation needed]
ValuJet Airlines was acquired by AirWays Corp. to form AirTran Holdings, with the goal of shedding the tarnished reputation of the former.[citation needed]
Aérospatiale was acquired by Matra to form Aérospatiale-Matra, with the goal of taking the former, a state-owned company, public.[citation needed]
The game company Atari was acquired by JT Storage, as marriage of convenience.[9]
US Airways was acquired by America West Airlines, with the goal of removing the former from Chapter 11 bankruptcy.[citation needed] This deal was unique because unlike many examples listed in this section, US Airways creditors (not shareholders) were left with control.[citation needed]
The New York Stock Exchange was acquired by Archipelago Holdings to form NYSE Group, with the goal of taking the former, a mutual company, public.[citation needed]
ABC Radio was acquired by Citadel Broadcasting Corporation, with the goal of spinning the former off from its parent, Disney.[citation needed]
CBS Radio was acquired by Entercom, with the goal of spinning the former off from its parent, CBS Corporation.[citation needed]
Frederick's of Hollywood parent FOH Holdings was acquired by apparel maker Movie Star in order to take the larger lingerie maker public.[10]
Eddie Stobart in a reverse takeover with Westbury Property Fund allowing transport by ship, road, rail, or boat to and within the UK, using only one company.[citation needed]
Clearwire acquired Sprint's Xohm division, taking the former company's name and with Sprint holding a controlling stake, leaving the resulting company publicly traded.[citation needed]
T-Mobile US which was called T-Mobile USA, Inc. at the time acquired MetroPCS and after the merger was completed changed the company name to T-Mobile US and began trading on the New York Stock Exchange as TMUS.[citation needed]
When the Holland America Line (HAL) was sold to Carnival Corporation & plc in 1989, the former owners (the Van der Vorm family) put the proceeds in an investment company (HAL Investments), using the cruise line's former Dutch listing to go public.[citation needed]
When VMware was acquired by Dell, a reverse merge was in place so the latter would be back to the stock market as a public company.[11]
In July 2020, Fisker, Inc announced plans to go public via a merger with Spartan Acquisition Corp (SPAQ), a "blank-check" company backed by Apollo Global Management.[12]
In March 2025, Canadian media company Blue Ant Media announced that it would go public by performing a reverse merger with Boat Rocker Media. However, Blue Ant will only acquire the corporate entity itself and several of its studio units (including Insight Productions and Jam Filled Entertainment), with the remainder of Boat Rocker to be bought out by its management to continue operating thereafter.[13][14]
See also
Capital formation
Private investment in public equity
Limited company
Pac-Man defense
References
"Investor Bulletin: Reverse Mergers" (PDF). U.S. SEC Office of Investor Education and Advocacy. June 2011.
Goh, Brenda (22 March 2016). "Alibaba-backed courier YTO Express to list via $2.7 billion reverse..." Reuters. Retrieved 9 April 2018.
"Reverse Takeover (RTO) Definition". Investopedia. Retrieved 10 November 2015.
Feldman, David N. (2006). Reverse Mergers: Taking a Company Public Without an IPO. Bloomberg Press. ISBN 978-1-57660-231-7.
Jasinski, Nicholas. "Bill Ackman's Pershing Square Files for Largest-Ever SPAC IPO". www.barrons.com. Retrieved 8 August 2020.
Andrews, Edmund L. (14 November 2014). "Charles Lee: Chinese Reverse Mergers Performed Better Than Their Reputation Suggested". Stanford Graduate School of Business. Retrieved 11 September 2014.
Gallu, Joshua (9 June 2011). "'Reverse-Merger' Stocks May Be Prone to Fraud, Abuse, SEC Says in Warning". Bloomberg.
"Reverse Mergers: The Pros and Cons". Investopedia. Retrieved 10 November 2015.
Bloomberg Business NEws (14 February 1996), "Atari Agrees To Merge With Disk-Drive Maker", New York Times, p. 1 {{citation}}: |last= has generic name (help)
"Frederick's of Hollywood goes public with merger." Reuters. 19 December 2006.
"Dell Technologies Announces Completion of VMware Spin-off". Dell Technologies. 1 November 2021.
"Electric car maker Fisker to go public through SPAC deal at $2.9 billion valuation". Reuters. 13 July 2020. Retrieved 14 July 2020.
"Blue Ant acquires Boat Rocker production assets and goes public via reverse IPO". C21media. Retrieved 24 March 2025.
Whittock, Jesse (24 March 2025). "Blue Ant Media Going Public Through Reverse Takeover Of Boat Rocker Media; Boat Rocker Studios Set For MBO". Deadline. Retrieved 24 March 2025.
External links
William K. Sjostrom, Jr., "The Truth About Reverse Mergers", Entrepreneurial Business Law Journal
"Are Chinese Reverse Mergers Toxic?", Prof. Charles Lee, Stanford Graduate School of Business
vte
Corporate finance and investment banking
Category:
Mergers and acquisitions
This page was last edited on 15 May 2025, at 13:18 (UTC).
https://en.wikipedia.org/wiki/Reverse_takeover#Other
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