Lion Electric temporarily lays off 400 workers, gets extension from creditors [Video]

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.

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