Lion Electric, an electric bus manufacturing company, announced hundreds of layoffs this month and suspended its operations in a Chicago suburb, according to officials.
The company, which the state of Illinois partnered with as part of its goal to become an electric vehicle manufacturing hub, revealed Sunday that it would temporarily lay off roughly 400 employees in both Canada and the U.S.
The layoffs were made across all departments within the company, Lion Electric said, noting that it would leave just 300 employees to manage their bus manufacturing sales and delivery operations, along with customer service.
As a results of the layoffs, the company also said it would suspended manufacturing operations at its Joliet facility.
Joliet Mayor Terry D’Arcy reported the company had received a two-week credit extension, during which time Lion Electric plans to "evaluate its options, including a potential sale of the business, which could lead to the reopening of the Joliet production site."
“The City and the Lion Electric team are in ongoing communication as the situation develops, and we remain committed to supporting efforts to keep Lion Electric operating in our community," D'Arcy said in a statement.
The Joliet facility first opened in 2022 and was touted as a major economic driver for the state, bringing hundreds of jobs to the region.
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Illinois Gov. J.B. Pritzker said at the time that the hub would "put Illinois at the forefront of a national movement to transition to zero-emission vehicle use, advancing our own goals of putting one million of these cars on the road by 2030."
Pritzker's office said in a statement that, despite the news, Lion Electric "continues to be a vital piece" of their strategy to turn Illinois "into a manufacturing hub for electric vehicles."
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"While this measure is temporary, we remain hopeful that Lion will continue to serve as a pillar of the Joliet community, and we are confident their 900,000 square foot facility will continue to be a standard bearer as the largest all-electric US plant dedicated to medium and heavy-duty commercial vehicle production," Press Secretary Alex Gough told NBC Chicago in a statement.
