Exro, LeddarTech, and Lion Electric face financial turmoil, highlighting deeper struggles in Canada’s auto tech sector amid trade and market challenges.
Canada’s once-promising auto tech sector has hit a dangerous skid. Three major companies—Exro Technologies, LeddarTech, and Lion Electric—are facing simultaneous financial emergencies, painting a grim picture of an industry in distress.
LeddarTech Scrambles to Avoid Default
Québec City-based autonomous vehicle software firm LeddarTech is on the brink of default. The company must raise $9.7 million USD (approximately $13.6 million CAD) by May 23 to avoid breaching its credit terms with Desjardins, which mandates it hold at least $1.8 million CAD in cash. As of May 8, cash reserves had dropped to just $4.1 million.
Facing a May 16 deadline to submit a financing plan, LeddarTech has admitted it may not meet the timeline. However, it is in talks with Desjardins and bridge lenders to secure emergency capital and gain relief from looming obligations.
Exro Secures Lifeline Amid Strategic Overhaul
In Calgary, cleantech company Exro Technologies has obtained up to $30 million USD ($42 million CAD) from a long-term institutional shareholder. The infusion will help Exro continue operations while an independent advisor conducts a strategic review of the business.
Potential outcomes of this review include capital restructuring or corporate mergers. Exro must submit an operating plan to its lender by May 20.
Lion Electric’s Ownership Shifts in Radical Deal
Montreal-based Lion Electric has reached a deal to transfer ownership to a Québec investor group, which includes current director Pierre Wilkie and real estate developer Vincent Chiara. The plan cancels all existing common shares and issues new ones to the buyer group.
The consortium will pivot Lion’s focus solely to manufacturing electric school buses in Saint-Jérôme, Quebec, abandoning its electric truck segment altogether.
Auto Tech Collapse Reflects Broader Industry Headwinds
These crises follow months of turbulence in Canada’s automotive sector. LeddarTech was at risk of delisting from Nasdaq in early 2024, while Exro faced legal threats over unrealistic revenue projections. Lion Electric filed for bankruptcy in December 2024, revealing over $244 million CAD in debt.
Contributing factors include global EV market slowdowns, failed government-backed investments, and a volatile trade climate. Honda recently paused a $15-billion EV investment in Ontario due to demand concerns. Even Sweden’s Northvolt—recipient of $7 billion CAD in Canadian government funding—declared bankruptcy in March 2025, casting uncertainty over its planned Québec battery facility.
Outlook: Hope and Hesitation Amid Policy Shifts
Battery plant expansions by Stellantis and Volkswagen continue as scheduled. Recent U.S. clarifications regarding CUSMA rules may alleviate tariff threats for Canadian manufacturers, but the path ahead remains clouded with economic and political uncertainty.
Stay tuned to Maple News Wire for the latest developments in Canada’s evolving auto tech story.
