Things are getting complicated at Lion Electric, which is under severe financial pressure. The axe is falling again at the manufacturer of electric buses and trucks, which is cutting 30% of its workforce, or 300 people, on both sides of the border.
The Saint-Jérôme-based company – strongly supported by Quebec and Ottawa – announced new measures aimed at reducing its costs on Wednesday, when it revealed its results for the second quarter ending June 30.
“The transition to electrification is taking longer than expected,” agreed its CEO and founder, Marc Bédard, in a press release.
These new cuts at Lion come on top of the approximately 370 layoffs and dismissals that have occurred since last fall.
As of June 30, there was only $2 million left in cash in the Quebec manufacturer’s coffers. The latter has since obtained a new loan of $7.5 million from the Legault government.
With production slowing, Lion delivered fewer vehicles in the second quarter. Revenue fell 48 percent to $30 million, while its net loss was $19.3 million, or 9 cents a share. In the second quarter last year, Lion lost $12 million, or 5 cents a share.
The new staff cuts announced by Lion on Wednesday are part of a series of measures that reflect the slimming regime in place. The company will adjust downward its production of trucks and sell batteries to third parties, among others.
Public money in Lion Electric:
- 2008–2021: $7 million in grants from the Quebec government for research and development
- 2021: 19 million from Investissement Québec (IQ) for the purchase of shares
- 2021: 100 million in loans from Quebec and Ottawa
- 2022: 15 million in loans from the Caisse de dépôt et placement du Québec
- 2023: 98 million loaned by IQ and the Fonds de solidarité FTQ
- 2024: 7.5 million in loans from the Quebec government.