IndiEV, a Potential Foxconn Customer, Files for Bankruptcy
YOUNGSTOWN, Ohio – IndiEV, a California-based electric-vehicle startup and a potential customer for Foxconn’s Lordstown operations, has filed for Chapter 11 bankruptcy.
The company filed for protection Monday in the U.S. Bankruptcy Court for the Central District of California, listing assets of $2.83 million and liabilities of $26.43 million, according to documents filed with the court.
IndiEV and Foxconn entered into a memorandum of understanding in September 2022 that called for Foxconn to manufacture pre-production prototypes of the EV company’s flagship vehicle, the Indi One, at the Lordstown plant.
“IndiEV’s bankruptcy filing does not impact our other business and manufacturing operations in Ohio, nor our continued efforts to find additional customers,” Foxconn said in a statement. “Our facility and team in Ohio remain an asset to [our] company to respond to the market demand of either start-up or traditional automobile manufacturers who want to see their electric vehicle brought to market.”
In October 2022, IndiEV and Foxconn executives joined community leaders at the plant to celebrate the memorandum of understanding and the opportunity for Foxconn to develop a new vehicle at the plant. On display were two earlier prototypes of the Indi One, which were manufactured at IndiEV’s offices in Los Angeles.
At that time, the two companies pledged to continue discussions toward reaching an agreement for Foxconn to mass-produce the Indi One, according to Business Journal files.
But in June, Malacca Straits Acquisition, a special purpose acquisition company, or SPAC, announced that a $600 million merger deal that would have taken IndiEV public was mutually terminated. Malacca liquidated June 16, according to regulatory filings.
Foxconn is not currently manufacturing prototypes for IndiEV.
IndiEV is the second EV maker associated with Foxconn’s Lordstown plant to file bankruptcy.
In June, Lordstown Motors Corp., filed for Chapter 11 in U.S. Bankruptcy Court in Delaware. In May 2022, Lordstown Motors sold its plant to Foxconn for $230 million and entered into a contract manufacturing agreement with the Taiwanese technology giant to produce the all-electric Endurance pickup. The parties, however, reached an impasse over Foxconn’s funding commitment, and Lordstown Motors was forced to file Chapter 11.
On Friday, Lordstown Motors approved a bid from LAS Capital, a company headed by Lordstown’s founder and former CEO Stephen Burns, to purchase the assets of the company out of bankruptcy for $10 million.
Lordstown Motors has also filed a lawsuit against Foxconn, alleging the company of fraud. Foxconn has denied the claims and has asked the bankruptcy court to dismiss the adversary complaint.
Foxconn is at present producing the MK-V, a driver-optional tractor developed by Monarch Tractor of Livermore, California, at the Lordstown plant.
The Taiwanese tech company has also signed a memorandum of understanding with Fisker Inc., which expects to manufacture the high-volume Fisker Pear EV at Lordstown beginning in July 2025.
Pictured at top: An IndiEV Indi One prototype was on view at Foxconn’s Lordstown plant in October 2022.
Copyright 2023 The Business Journal, Youngstown, Ohio.