Lion Electric Temporarily Lays Off 400 Employees, Pauses Production at Illinois Plant
Electric bus manufacturer Lion Electric has announced a temporary layoff of 400 employees and a shutdown of production at its plant in Illinois. The St-Jérôme, Quebec-based company revealed on Sunday that it had secured a two-week extension, until December 16, for a loan and a credit agreement with a syndicate of lenders, after a previous deadline expired on Saturday.
Lion Electric stated that its 300 remaining employees would focus on bus manufacturing, sales, and delivery during this period. This is the fourth round of layoffs for Lion Electric in 2024, with previous rounds resulting in nearly 520 job losses, highlighting the challenges currently facing Quebec's electric vehicle industry.
The company reported a net loss of \$33.9 million for the third quarter of 2024, according to financial results published on November 6. The two-week extension aims to provide Lion Electric with time to consider its options, which may include a sale of the business or seeking creditor protection.
“There can be no assurance that the company will be successful in pursuing and implementing any such alternatives, nor any assurance as to the outcome or timing of any such alternatives,” the company noted in its statement.
The union representing workers at Lion Electric's St-Jérôme factory indicated that while the two-week extension suggests that serious discussions are underway to save the company, it does not guarantee a positive outcome. “We should not forget that behind the company’s difficulties there are people who are anxious and worried about their future,” said Éric Rancourt, Quebec representative of the International Association of Machinists and Aerospace Workers.
