Lion Electric plans to focus on buses rather than trucks

An electric school bus passes in front of Lion Electric's battery manufacturing plant for medium- and heavy-duty vehicles in Mirabel, Quebec, on Monday, April 17, 2023. (The Canadian Press/Graham Hughes)

Quebec-based electric vehicle company Lion Electric wants to put truck manufacturing on hold and focus on school buses as part of a restructuring plan that would bring all production operations back to Quebec.

The troubled company, which filed for creditor protection under the Companies' Creditors Arrangement Act last month, is looking for a buyer. It has suspended operations and laid off most of its employees. 

However, a sales pitch distributed to potential buyers indicates that the company could be profitable if it produced 550 buses a year at its manufacturing plant in Saint-Jérôme, in the Laurentians. This would represent about a fifth of the plant's capacity of 2,500 vehicles a year.

A report filed with Quebec Superior Court on Friday indicates that 136 potential buyers have been approached since Lion Electric obtained protection from its creditors on Dec. 19. According to the same document, 11 companies have shown an interest in acquiring the company's assets on a piecemeal basis. 

Lion Electric made several rounds of layoffs in 2024 and suspended operations at its Illinois plant. The company announced further layoffs last week. The company said its remaining 160 workers would focus on helping customers service school buses and trucks.

"Lion Electric's recovery plan proposes to focus on its electric school buses and temporarily pause its electric truck manufacturing operations, and will continue to support its customers with service and parts distribution," company spokesman Patrick Gervais said by email. 

According to the document for potential buyers, Lion currently has around 2,200 vehicles on the road and holds a 33 per cent market share for electric school buses in North America, with deliveries to 28 states and six provinces. The company says it also has 135 completed buses and trucks and 50 buses that are 90 per cent complete.

On Tuesday, a judge extended the company's protection from creditors until Feb. 14. The company expects to reach an agreement in April. 

This report by The Canadian Press was first published in French on Jan. 8, 2024.