Electric bus manufacturer Lion Electric suspends operations at Channahon plant

CHANNAHON, Ill. (WLS) -- Lion Electric, which manufactures electric buses, will suspend its operations at its Channahon facility, the company announced in a press release Tuesday.

The company announced the suspension of operations at the plant as well as temporary layoffs of about 400 workers across the company, which is based in Canada. The layoffs leave Lion Electric with about 300 workers.

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The plant in Channahon opened in July of 2023 and was set to produce up to 20,000 vehicles a year. The plant was the first dedicated vehicle assembly plant in the Chicago area since 1965.

SEE ALSO: Lion Electric opens electric vehicle plant in Channahon

In a statement, Joliet Mayor Terry D'Arcy said, "The City of Joliet has been in close communication with the Lion Electric team over the past few months to monitor the situation. The temporary layoff of its workforce has unfortunately affected the Joliet production site. However, the company has received a two-week credit extension from the banks, and during this time, Lion will evaluate its options, including a potential sale of the business, which could lead to the reopening of the Joliet production site."