Another Quebec EV manufacturing plant closes its doors

Quebec electric-vehicle charging company Flo will be closing one of its assembly plants in Shawinigan, resulting in 80 employees being laid off as demand for EVs continues to decline.

Source: Flickr

Quebec electric-vehicle charging company Flo will be closing one of its assembly plants in Shawinigan, resulting in 80 employees being laid off as demand for EVs continues to decline.

“There’s no argument the landscape around EVs has shifted dramatically in the last 12 months; it doesn’t help that the American administration can change policies not just by the day, but sometimes by the hour,” said Flo CEO Louis Tremblay in a statement. “This is less than helpful for companies trying to do business.”

However, the statement did not detail how trade tensions have affected the company.

Flo was founded in Quebec City in 2009, originally under the name AddEnérgie, and produces EV chargers in both Canada and the U.S.

Flo currently has two other production sites, one in the Grand-Mère area of Quebec, plus another in Auburn Hills near Detroit.

It opened its Shawinigan plant in 2021 before adding a U.S. production plant in 2022, both of which received strong financial support from the government.

FLO “secured $136 million in long-term capital, principally from a Series E equity financing, led by Export Development Canada,” according to a press release from last June.

The company also received taxpayer subsidies from the Caisse de dépôt et placement du Québec, Investissement Québec, as well as the Business Development Bank of Canada.

However, the company said it will now shift focus away from production and pivot towards the operation and management of charging station networks.

According to Flo, the change in direction will offer more predictability and a better revenue stream amid changing geopolitical relations.

“This decision reflects several challenging realities. Trade tensions, shifting political dynamics — particularly in the U.S. — and inconsistent policy signals around electric vehicles have made long-term planning extremely complex,” said Tremblay.

Flo’s workforce has been reduced by nearly half of what it was in 2023, when it employed almost 600 employees.

The closure of its Shawinigan plant follows a trend in Canada’s declining EV industry.

Quebec EV manufacturer Lion Electric also sought liquidation in May after receiving $200 million in taxpayer subsidies.

The company, which had been producing electric school buses and trucks for the province, faced collapse after the Quebec government refused to offer further financial support

"It would have been irresponsible to go ahead with another significant injection of public funds into Lion, based on the plan that was presented to us," Economy Minister Christine Fréchette told reporters at the time. "I would have expected the private sector to be more involved."

Lion Electric had requested an additional $24 million in government aid in May to relaunch the company, but was ultimately denied.