MONTREAL — Quebec electric-vehicle maker Lion Electric Co. wants to pause building trucks and focus instead on school buses as part of a restructuring plan that would return all manufacturing operations to the province.
The struggling company, which entered creditor protection last month and is seeking a buyer, has halted operations and laid off most of its workers.
But a pitch distributed to potential buyers says the business could be profitable if it produces 550 electric buses a year at its manufacturing plant in St-Jérôme, Que., northeast of Montreal. That would represent about one-fifth of the plant's capacity of 2,500 vehicles a year.
A report filed in Quebec Superior Court on Friday says 136 potential buyers have been approached since Lion Electric obtained protection from its creditors on Dec. 19, as well as 11 firms that could be interested in acquiring company assets on a piecemeal basis.
The company went through several rounds of layoffs in 2024 and shut down production at a plant in Illinois in December. It announced further layoffs last week and said its remaining 160 workers would focus on helping clients with the maintenance of school buses and trucks.
"Lion Electric's recovery plan proposes to focus on its electric school buses and temporarily pause its electric truck manufacturing activities, but will continue to support its customers with service and parts distribution," spokesperson Patrick Gervais said Wednesday in an email statement.
According to the document for potential buyers, Lion Electric currently has about 2,200 vehicles on the road and a 33 per cent market share of electric school buses across North America, with deliveries in 28 states and six provinces. The company says it also has 135 completed buses and trucks on hand, and 50 buses that are 90 per cent complete.
A judge on Tuesday extended Lion Electric's creditor protection until Feb. 14. The company is planning to finalize a deal in April.
This report by The Canadian Press was first published Jan. 8, 2025.
Maura Forrest, The Canadian Press