7/18/2025|Updated: 7/18/2025
A Canadian manufacturer of electric vehicle chargers is citing trade tensions and changing political dynamics in the United States as key reasons for its decision to shutter one of its Quebec manufacturing plants.
FLO, an EV charging network operator headquartered in Quebec City, has announced the closure of its Shawinigan manufacturing facility, one of the two plants it owns in the province.
The closure is part of a comprehensive downsizing effort that will result in the layoff of more than 80 FLO employees in Canada and the United States, including at the company’s Michigan plant in Auburn Hills, located roughly half an hour north of Detroit, FLO president and CEO Louis Tremblay said in an emailed statement.
The company did not offer details on how many jobs will be lost at each plant or if its facility in the Grand-Mère region of Quebec will be impacted by the layoffs. A July 10 press release from the City of Shawinigan said 30 skilled jobs would be lost when the local plant closes.
Tremblay characterized the layoffs and the closure of the plant as an “incredibly hard” but “responsible” decision in response to current market challenges. He said the move will allow the company to modify its operations “to reflect current realities.”
“We did not make this decision lightly,” he said. “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.”
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Shawinigan Mayor Michel Angers called the news of the plant closure a “sad day” for his city, and pointed to both the tariffs leveraged against Canada by U.S. President Donald Trump and his frequent policy changes as contributing factors. That, combined with inconsistent Canadian subsidies and policies have all hurt the industry and his town, he said.
Canada formerly offered up to $5,000 in federal incentives for the purchase of electric vehicles under the Incentives for Zero-Emission Vehicles (iZEV) Program. That program has since been paused, making it more expensive to buy an EV in Canada.
“We are now experiencing the direct consequences,” Angers said in the press release. “This inconsistency between long-term policy directions and short-term decisions is weakening our green economy. 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.”
Policy Changes and Funding
Policy changes in Canada and the United States are not the only factors at play. There has been an overall slowdown in the battery industry globally in the past year.
This has impacted Canada’s fledgling EV industry and reflects a significant shift from just a few years ago when companies were eager to invest in the sector.
FLO’s future looked promising as early as last year, when it secured $136 million in its largest funding round ever, with support from major investors such as 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.
Ottawa earmarked more than $1.2 billion in January 2023 to build approximately 84,500 chargers by 2027, on top of those supported by investments from provinces and the private sector. Then-Prime Minister Justin Trudeau visited FLO’s Shawinigan facility to announce the funding, though he didn’t say how much of the money would be reserved for FLO or how it would be administered.
A few months later, FLO received a $220 million loan commitment from the Canada Infrastructure Bank (CIB). The April 2023 announcement said the funding would be used to bring more than 2,000 public fast-charging ports online across the country by 2027. The CIB is a federal Crown corporation that was created by the government to invest in infrastructure projects that benefit Canadians.
FLO also benefitted from the Zero Emission Vehicle Infrastructure Program, which provides funding for EV charging infrastructure.
EV Focus Shift
Ottawa has been a major investor in the EV industry since 2020. It has promised some $52 billion in assistance through subsidies for EV-related plant construction and production, along with tax credits, according to a 2024 estimate by the parliamentary budget officer.
The plants, primarily located in Quebec and Ontario, include a diverse array of operations, from electric vehicle assembly facilities to those that process raw metals into the necessary chemicals for manufacturing battery cells.
Despite large investments from governments and other stakeholders, the interest in eclectic vehicles has appeared to wane over the past year.
The price difference between EVs and gas-powered vehicles, worries about their driving range and the availability of charging facilities, along with the repercussions of increased interest rates and inflation, have all played a role in shaping recent consumer behaviour.
A consumer data report released in May by J.D. Power suggested a significantly reduced number of Canadians showed interest in acquiring an electric vehicle. Only 11 percent of new-vehicle buyers in Canada say they are “very likely” to consider an EV for their next purchase, the report found.
Testing has also indicated that EVs are not as reliable in sub-zero weather, which can be a significant problem in countries like Canada where winters can be long and cold.
Despite the hurdles of the past number of months, Tremblay said FLO continues to “deeply believe in the future of electric mobility.”
“Our commitment to Canadian innovation and to the North American EV transition remains unwavering,” he said, noting that the company’s current reductions are to “ensure FLO can continue to lead in this critical space for years to come.”
FLO, which was founded in Quebec in 2009 as AddÉnergie, also said it remains committed to the residential market.
A company spokesperson said FLO Home chargers will continue to be produced and delivered without disruption across North America.
Source: Epoch Times
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