Electric school bus manufacturer Lion Electric has halted production at its Joliet, Illinois facility after laying off nearly 400 workers – more than half of its global workforce. The company is hoping Canadian real estate developer Groupe Mach can save the day.
Lion Electric's remaining 300 employees are working to manage the company's ongoing operations – including sales, delivery, and customer service – while the executive team engages Groupe Mach in talks to provide more funding to the cash-strapped electric bus manufacturer.
The 900,000-square-foot Joliet plant opened in July 2023, and is the largest assembly plant for medium- and heavy-duty electric vehicles in the US. At full capacity, the facility is capable of producing around 20,000 electric vehicles per year.
Groupe Mach and the Ontario-based Mirella & Lino Saputo Foundation were part of a group of investors who bought equity of $ 90 million in Lion Electric back in 2023, but of Canada. Financial post reports that Mach will do it only come in if the Saputo family is there again willing to put up more money to help bail out the company.
Financial post he said their source spoke and asked not to be identified as negotiations are still ongoing. The National Bank of Canada, along with Lion's other stakeholders, offered temporary help to get through the next two weeks, suspending payments on the company's line of credit until Dec. 16, which gives the troubled bus company about two weeks to get more money. .
In addition to school buses, Lion Electric also produces Battery 6 and 8 electric trucks, and delivered North America's first all-electric truck to a Canadian customer earlier this year.
Electrek's Take
This is tough news for the industry. Especially as someone who lives near the Lion Electric facility in Illinois and has traveled there many times and made a few friends there, I hope the company gets the help it needs to continue – it seems so close to do it, and a few well-timed POs can make all the difference you need to lionize to keep going trucking traveling by bus.
SOURCE | PHOTOS: Financial post; Lion Electric, via California HVIP.
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