Quebec ready to support Lion Electric if private sector joins in
Posted December 2, 2024 5:14 pm.
Quebec remains open to helping support Lion Electric financially – once again – provided the private sector is part of the equation.
Christine Fréchette, Minister of the Economy and Energy, indicated on Monday that the Quebec manufacturer of electric buses is currently holding discussions “with potential private partners.”
“I see that there’s a willingness on the part of other private players who might be ready to invest in the company. Will that be enough to get us in? We want to see players other than the public around the table,” she said in a press scrum, at a Chambre de commerce de l’Est de Montréal event.
Fréchette reiterated that the Québec government “would be prepared to hand over money if the business plan is sound and if there are players other than the public.”
The minister deplored the 400 temporary layoffs announced the day before by Lion Electric, both in Canada and the United States.
“My first thoughts are for the workers who have lost their jobs, just a few weeks before Christmas. It’s always sad to hear about layoffs,” commented Fréchette.
The company now has just 300 workers, after three further waves of layoffs in 2024, involving almost 520 jobs.
The company is trying to replenish its coffers. On Sunday, it managed to obtain a two-week reprieve from its lenders.
In early November, Lion warned that it feared it would run out of money to continue operations if it failed to find alternative sources of financing. It suggested the sale of assets as an option, in addition to opening the door to the sale of the company.
The manufacturer is also considering the possibility of sheltering itself from creditors. Lion Electric posted a net loss of US$33.9 million in the third quarter of 2024, according to results released on Nov. 6.
–This report by La Presse Canadienne was translated by CityNews
