Lion Électrique is going through a tumultuous period marked by massive staff reductions. The company, which now has only about 160 employees after a series of layoffs, is focused on supporting its customers with vehicle maintenance.
These reductions, which occurred as part of a restructuring under the Creditors Arrangement Act, reflect the financial and organizational challenges it faces. With production at a halt and recent asset sales, former employees have a lot to say about Lion’s internal practices and the challenges that led to this crisis.
Major flaws in truck design
Former Lion Electric employees highlight major problems in vehicle design and assembly. The Lion8 model, nicknamed “Frankenstein” due to its inconsistent assembly, had different internal configurations from truck to truck, revealing a lack of standardization. As for the Lion6, it was criticized for elements attached with plastic clips (tie wraps) and insufficient insulation, which let cold air in and reduced battery life, a crucial issue for electric vehicles.
Frustrated Customers and Revised Orders
The Société des alcools du Québec (SAQ) also encountered difficulties with the Lion8 truck acquired in 2019. After delivery delayed by more than three years, the vehicle was returned to Lion Électrique in 2023 due to autonomy problems and performance, making it “unfit to drive” according to inspectors. Despite adjustments, the truck did not meet the operational needs of the SAQ, leading to successive returns to the manufacturer for additional modifications. These incidents are in addition to concerns expressed by other Lion Electric customers regarding the reliability of their vehicles.
Customers, such as Parc Safari, have reported significant losses due to trucks frequently breaking down. Amazon and Canadian National, after disappointing tests, reduced or canceled their orders. Other companies like Hydro-Québec also had to make technical adjustments to make the vehicles functional.
Lack of preparation and poor management
Testimonies from former employees reveal chaotic manufacturing processes. Vehicles were sometimes sold before being fully tested, and technicians’ comments were often ignored. Rushed production, dictated by financial objectives, would have prevented the company from meeting market quality standards.
An uncertain future
Despite these setbacks, Lion Electric claims its role as a pioneer in electric vehicles in Canada. With hundreds of trucks and buses still on the road, the company is trying to reassure its customers while seeking to overcome production and management challenges. Its next steps will be crucial to ensure its survival and regain market confidence.
