MONTREAL — Electric bus manufacturer Lion Electric is temporarily laying off 400 employees and shutting down production at its Illinois plant after getting a two-week reprieve from its lenders.
The St-Jérôme, Que.-based company said in a statement Sunday that it has secured an extension to Dec. 16 for a loan and a credit agreement with a syndicate of lenders, after a Saturday deadline passed.
The company says its 300 remaining employees will focus on bus manufacturing, sales and delivery.
Lion Electric has already carried out three other rounds of layoffs in 2024, involving nearly 520 jobs, as Quebec’s electric vehicle industry faces headwinds.
The company posted a net loss of US$33.9 million in the third quarter of 2024, according to results published Nov. 6.
The two-week extension will give Lion Electric time to consider its options, including a sale of the business or a decision to seek creditor protection, the company says.
“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 statement reads.
The union representing workers at the company’s St-Jérôme factory says the two-week extension shows there are serious discussions underway to save the company, but that it doesn’t guarantee a solution.
“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.
This report by The Canadian Press was first published Dec. 1, 2024.
The Canadian Press