So much for Plan Steve to increase US car production capacity

Investment Analysis Clubs Macro Economic Trends and Risks
1

Several years ago, GM sold it’s assembly plant in Lordstown, Ohio, to “Lordstown Motors”, an EV startup. Lordstown Motors went BK, and Foxconn bought the plant. I had visions of an automaker, desperate for additional US capacity, to duck tariffs, buying the plant, or contracting with Foxconn to build their cars.

Cancell that out. Foxconn has sold the plant to a startup that claims it will “pivot to manufacturing cloud computing hardware, specifically designed for AI applications.” Oh boy. A 12 day old company, that mixes two buzzwords, “cloud computing” and “AI” in one mission statement.

So, a company that could really do something productive with that plant, like Hyundai or VW, can’t.

Steve

2

That is one huge plant. Cloud computing hardware?

DB2

3

Given the company is a start-up, I would expect it to end like most start-ups: dead after a lot of money is vaporized, with nothing accomplished. Plan Steve would have had that plant building something useful, and employing thousands of people. But nope, it gets swept up in the AI hype parade.

The old Mitsubishi plant in Normal, Illinois, was on the brink of the equipment being sold off piecemeal, and the plant torn down, when Rivian bought it. Rivian reported today. Does not seem their report was “better than expected”.

Steve