Lion Electric’s significant order of 50 electric trucks by Canadian National (CN) remains unfulfilled four years later, with CN reducing its order to four trucks due to performance concerns. Other anticipated clients, including SAQ and Agropur, have also faced challenges, with SAQ returning its truck over unsuitable load capacity. Despite setbacks, Lion Electric has deployed hundreds of vehicles, supported by substantial public funding and a well-connected leadership team, indicating ongoing efforts to meet customer needs.
The Significance of Lion Electric’s Orders
Lion Electric’s CEO, Marc Bédard, declared, “This is the most important order in Lion’s history to date,” highlighting the landmark sale of 50 electric trucks to Canadian National (CN). However, four years later, CN has yet to receive any of these vehicles.
Michelle Hannan, a spokesperson for CN, clarified, “Currently, CN has not received any Lion8 T trucks, but several months ago, we adjusted the number of vehicles in our order to four.” She added that future orders will depend on the performance of the trucks.
During a press conference back in 2020, Pablo Rodriguez, who served as Justin Trudeau’s Quebec lieutenant, emphasized the importance of this partnership, stating it would generate jobs. These electric trucks were intended to operate in major cities like Montreal, Toronto, and Vancouver, aiming to minimize greenhouse gas emissions and reduce noise pollution, according to CN’s then-CEO, Jean-Jacques Ruest.
Challenges with Client Deliveries
In March 2019, Marc Bédard made a memorable entrance in an electric truck adorned with the SAQ logo, amid applause from ministers and media. However, just five months later, the SAQ had no Lion trucks in its fleet, having opted not to retain the one it initially ordered.
SAQ spokesperson Linda Bouchard explained, “We returned our truck to Lion until a model could meet our needs. The main issue is with the load capacity, which is not suitable for transporting our bottles.”
Additionally, prominent companies like Agropur and Molson Coors, showcased as clients in Lion’s December 2020 investor presentation, have confirmed they have not placed any orders. Amazon, which ordered ten Lion trucks in 2020, has remained silent regarding recent inquiries, though some trucks were reportedly deployed in the U.S. the following year.
Hydro-Québec has recently integrated three bucket trucks into its operations, albeit three years later than anticipated. The utility company also uses two Lion6 trucks for transporting equipment. Hydro spokesperson Louis-Olivier Batty noted, “One of the bucket trucks was recently sent to Lion’s service center for technical adjustments.”
Despite these setbacks, Lion Electric has managed to put hundreds of vehicles on the roads across North America, including many school buses and delivery trucks for Ikea. Earlier this year, CAA-Québec also introduced an electric Lion tow truck into their fleet.
Lion spokesperson Patrick Gervais concluded, “Lion has always made the necessary efforts and investments to offer the best products on the road that meet the needs of its customers, and we continue to do so.”
Strong Connections and Financial Backing
Lion Electric boasts a well-connected leadership team. Guy LeBlanc, the former CEO of Investissement Québec, was a shareholder until 2019 and previously served on the company’s board. Michel Ringuet, the principal director, was also a trustee of the blind trust of former Economy Minister Pierre Fitzgibbon. Meanwhile, Pierre Larochelle, the chairman of Lion’s board, is the former CEO of Énergie Power, a subsidiary of Power Corporation.
Lion Electric has received substantial public funding to bolster its operations:
- Ministry of Economy:
- March 2020: $5 million (debenture)
- July 2021: $50 million (loan)
- July 2023: $46.3 million (debenture)
- July 2024: $7.5 million (loan)
- Innovation Canada:
- July 2021: $50 million (loan)
- Investissement Québec:
- 2021-2021: $18.9 million (equity)
- Caisse de dépôt et placement du Québec:
- November 2022: $15 million (credit facility)
- Fonds de solidarité FTQ:
- July 2023: $25 million (loan)
- Fondaction:
- July 2023: $7.5 million (loan)