The temporary layoff of some 400 employees by the electric vehicle manufacturer Lion Électrique does not worry the president and CEO of Electric Mobility Canada, who considers the search for new investors a “good omen”.
“I think it still bodes well,” summarized Daniel Breton in an interview on the show “Le Bilan” on LCN.
Monday evening, the CEO of Electric Mobility Canada (MEC) insisted on the temporary nature of the layoffs at the Quebec manufacturer of electric vehicles by emphasizing the company’s desire to find new financing.
However, he qualified his remarks to recall that the automobile industry in general finds itself in a difficult situation with what is happening at Volkswagen, in Germany, or at Stellantis, whose CEO has just resigned.
“These are difficult times for the car, truck, bus industry around the world. The economy is obviously precarious, then there are a lot of geopolitical, economic and political tensions,” observed the guest of “Bilan”.
But beyond the very real difficulties facing the Quebec giant Lion Électrique, what about the electric vehicle sector in this context of reduction in government subsidies?
“When we look broadly at the electrification and transport market, sales continue to increase. […] What we see is that, if things do not go well, sales will triple by 2030. If things go well, it risks quintupling,” anticipated Mr. Breton, ruling out the disaster scenario.
According to figures put forward by the CEO of MEC, in the third quarter of 2024, sales of electric vehicles in Quebec reached 34.6%, two years ahead of the Quebec government’s objective.
Mr. Breton put into perspective the $3,000 reduction in the subsidy from January, which, according to him, is not likely to have an effect on sales of electric vehicles, putting forward the hypothesis of an adjustment by manufacturers to make lower prices in the wake of the falling interest rate.
