Market instability, changing government policies and U.S. trade tensions are key reasons behind FLO’s decision to shut down its plant and lay off some employees

Electric vehicle charging network operator and equipment maker, FLO, is closing its manufacturing facility in Shawinigan, Que., by the end of August.

About 30 employees at the facility will be laid off.

The closure, first reported in the French language paper, La Presse, is part of a larger downsizing effort that will see over 80 FLO employees let go across Canada and the United States, including at FLO’s U.S. plant in Auburn Hills, Michigan.

“This is an incredibly hard moment for our company, and my thoughts are first and foremost with our colleagues who are affected by this decision,” reads a statement from FLO president and CEO, Louis Tremblay.

“Their dedication, hard work, and contributions to FLO have shaped who we are, and we are deeply grateful.”

FLO says it will continue to build chargers in Quebec, at its Grand-Mère facility and in Michigan. The company also intends to keep using subcontractors to support its EV charger manufacturing.

A FLO spokesperson told Electric Autonomy via email that the company will not be commenting further on the announcement.

Uncertainty and slowdown

In 2024, FLO raised $136 million in its largest funding round to date, supported by major investors including Export Development Canada (EDC), the Caisse de dépôt et placement du Québec, Investissement Québec, Business Development Bank of Canada, Energy Impact Partners and MacKinnon and Bennett & Co. Inc.

But one year can make a significant difference.

In the face of new market realities FLO says the decision to scale back its assembly lines was not made lightly.

The company points to mounting trade tensions, political instability and shifting government policies around electrification as major hurdles to long-term planning.

“We remain committed to offering high-quality chargers and to serving our customers without interruption,” said Tremblay.

But changing conditions, such as the withdrawal of provincial and federal EV incentives and a global slowdown in the battery industry have impacted demand and have led to deals with customers falling through last-minute, said Tremblay.

In the U.S., political resistance to EVs and unclear policy signals have also contributed to the decision to reduce FLO’s operations.

Shawinigan mayor, Michel Angers, expressed dismay at the news, highlighting that the closure is a clear example of how global and national policy uncertainty can hurt local communities.

“This is a sad day for Shawinigan,” he said in a statement.

“Just a year ago, FLO was looking to expand its facilities here. Today, we’re experiencing a closure. This shows how much the prevailing uncertainty is harming the predictability our businesses need.”

FLO adapting for the future

While FLO navigates a turbulent market, it says it is not abandoning its vision for electric mobility.

Tremblay says the restructuring is part of the company’s strategic pivot toward becoming a profitable and sustainable charging network operator.

“[This decision] is a responsible step, one that allows us to adjust our operations to reflect current realities,” said Tremblay.

“We deeply believe in the future of electric mobility, and we are taking these challenging steps today to ensure FLO can continue to lead in this critical space for years to come.”

To do this, the company is keeping its Michigan facility and will maintain offices in Montreal and Vancouver. It’s is also emphasizing its position in the residential charger market.

“Our reliable FLO Home chargers will continue to be produced and delivered without disruption, as we know how essential they are to EV drivers across North America,” said a FLO spokesperson in a statement to Electric Autonomy.

Meanwhile, Angers called for long-term, stable government support to avoid further setbacks in the transition to electrified transportation.

“This is not the time to back down,” he says.

“It is the time to collectively assert ourselves on the path of consistency, sustainable development, and the creation of quality jobs.”