As Lion Electric attempts to stay afloat amid hemorrhaging cash and rising debt, the company announced its latest workforce reduction is halting production at an Illinois electric vehicle factory it opened not quite a year and a half ago.
On Sunday, Lion announced the latest amendments to its senior revolving credit agreement, the fourth such move this year, extending the maturity agreement with lenders from Nov. 30 to Dec. 16. Lion said this will allow the company to maintain minimum liquidity needs for continued operation.
“Such additional liquidity will also provide the company with additional time to continue to actively evaluate potential alternatives relating to a restructuring of its obligations, a sale of the business or certain of its assets, strategic investments and/or any other alternatives, including seeking creditor protection … There can be no assurance that the Company will be successful in pursuing and implementing any such alternatives, nor any assurance as to the outcome or timing of any such alternatives,” according to a press release.
Lion also announced it was temporarily laying off 400 additional employees in both the U.S. and Canada. The company laid off 520 workers earlier this year. The latest workforce reduction suspends all production at the Joliet, Illinois, facility, which opened in July 2023 to much fanfare.
The company added that it has approximately 300 employees remaining that will focus on bus manufacturing, sales, service, delivery and maintenance.
On Nov. 30, the New York Stock Exchange began delisting Lion warrants citing “abnormally low selling price” levels. Since September, company revenue is down nearly 62 percent, with net income down 71 percent.
Lion was the first all-electric school bus manufacturer to reach market in 2017. It has over 2,200 total electric vehicles including trucks on the road.
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