By Lion Electric’s Loss Widens in Q4
In the fourth quarter, Lion Electric experienced a widened loss, primarily attributed to inventory write-downs and increased costs. The Montreal-based electric medium and heavy-duty urban vehicle manufacturer reported a loss of $56.5 million, or 25 cents per share, compared to $4.64 million, or 2 cents per share, in the same quarter last year.
Factors Contributing to Loss
The company mentioned an inventory write-down and an impairment charge stemming from the delayed start of commercial production of the LionA and LionM minibuses as well as higher costs during the period. Despite this, revenue saw an increase to $60.4 million from $46.8 million, with 14 more vehicles delivered, totaling 188 vehicles in the quarter.
Temporary Workforce Reduction
To align with reduced production and deliveries of vehicles, Lion Electric has made the decision to temporarily reduce its workforce. Approximately 100 employees, mainly night shift production workers at the Saint-Jerome manufacturing facility, will be affected as part of efforts to rationalize the company’s cost structure.
Challenges Faced
The company has encountered challenges, including delays in securing government subsidies and incentives. These factors have contributed to delays in scheduled deliveries and sales efforts. Lion Electric is planning to reassess its production needs based on future developments.
Comments