Electric bus manufacturer Lion Electric is facing financial difficulties, leading to the suspension of manufacturing at its Joliet, Illinois facility and the layoff of nearly four hundred employees. However, there is hope on the horizon as Canadian real estate developers Groupe Mach are in talks to potentially provide the much-needed funding to rescue the company.
The remaining 300 employees at Lion Electric are currently focused on managing the company’s ongoing operations, including sales, deliveries, and customer service. Meanwhile, the executive team is engaged in discussions with Groupe Mach to secure additional funding for the cash-strapped manufacturer.
The Joliet factory, which opened in July 2023, is the largest all-electric medium- and heavy-duty vehicle assembly plant in the US. With the capability to produce up to 20,000 electric vehicles annually, the facility plays a crucial role in Lion Electric’s operations.
Groupe Mach, along with the Ontario-based Mirella & Lino Saputo Foundation, previously invested $90 million in Lion Electric in 2023. However, reports suggest that Groupe Mach will only provide further assistance if the Saputo family also contributes additional funds.
The National Bank of Canada and other Lion stakeholders have offered temporary help by suspending payments on a line of credit until December 16. This gives the company nearly two weeks to secure additional funding and stabilize its financial situation.
In addition to manufacturing electric school buses, Lion Electric also produces battery-electric Class 6 and 8 commercial trucks. The company recently made headlines by delivering the first all-electric tow truck in North America to a Canadian customer.
The potential rescue of Lion Electric by Groupe Mach is essential for the future of the company and the electric vehicle industry as a whole. With the support of investors and stakeholders, Lion Electric may overcome its current challenges and continue to make significant contributions to sustainable transportation.
As we await further developments in this story, it is crucial to recognize the importance of supporting innovative companies like Lion Electric in their mission to drive the adoption of electric vehicles and reduce emissions in the transportation sector.
Source: Financial Post; Lion Electric, via California HVIP.
