Lion Electric to ‘suspend’ production in Joliet

Lion Electric announced it will “suspend” operations at its Joliet plant as the company continues to cut jobs and lose money.

The manufacturer of electric buses and trucks did not provide details on its plans for the Joliet factory, which has been in operation just since November 2022.

But Joliet Mayor Terry D’Arcy said he believes operations stopped as of Monday.

“We heard they made calls as of today that they suspended operations,” D’Arcy said. “We don’t think anyone is working there.”

D’Arcy said the city has not yet heard from Lion Electric about its plans for the Joliet plant.

The company leases 900,000-square-feet at 3835 Youngs Road.

“We heard they made calls as of today that they suspended operations. We don’t think anyone is working there.”

—  Joliet Mayor Terry D’Arcy

Lion Electric on Sunday announced a layoff of 400 workers companywide, more than half of its workforce.

“The company’s manufacturing operations at its facility located in Joliet, Illinois will also be suspended as a result of this workforce reduction,” Lion said in a statement.

The latest layoffs leave Lion with 300 employees.

Lion said it is pursuing options, including a possible sale of the business, to meet financial obligations coming due Dec. 16.

The Canada-based company has been scaling back for the past year, laying off workers at both its Joliet and Canadian plants amid growing financial losses and declining sales. After a round of layoffs in July, a union organizer in contact with employees estimated the number of workers in Joliet was down to 25 or 30.

The company would not provide specific numbers for how many employees remained at the Joliet plant.

In November, Lion Electric issued a quarterly report showing reduced revenues, growing losses, and a decline in sales.

Revenue for the third quarter was $30.6 million, down from $80.6 million in the same quarter a year ago. The company had a net loss of $33.9 million compared to a net loss of $19.9 million in the third quarter of 2023. During the quarter, Lion Electric delivered 89 vehicles, a drop from 245 vehicles delivered in the same quarter in 2023.

Lion Electric came to Joliet with fanfare for its place in the future electric vehicle industry in Illinois.

The state provided the company with a $7.9 million tax-incentive package tied to 745 future jobs at the Joliet plant, a number that Lion executives said they would exceed.

But the tax credits were not scheduled to kick in until 2026, a spokesman for the governor’s office said, adding that no tax relief has been provided yet to Lion Electric.

Gov. JB Pritzker and both U.S. senators from Illinois joined company executives and a lineup of state and local officials for a grand opening ceremony in July 2023 when Lion was lauded for bringing the first vehicle assembly plant to the Chicago region in more than 50 years.