Electric vehicle charging station company Flo will close one of its three charging station assembly plants. The reason given for shuttering the plant in Shawinigan, Quebec is simple: tariff and trade barriers, and the withdrawal of government policies favouring electrification in the U.S. is hurting business.
"This decision reflects several difficult realities. Trade tensions, evolving political dynamics — especially in the United States — and inconsistent policy signals regarding electric vehicles have made long-term planning extremely complex.”
- Flo CEO Louis Tremblay
Several clients who were planning to purchase charging stations had canceled orders or put them on hold. The current uncertainty is making it difficult for the company to continue doing business as usual.
Founded in 2009, Quebec-based Flo expanded its second plant in Shawinigan in 2021 and added a production footprint in the U.S. in 2022, when strong government support on both sides of the border accelerated the demand for chargers for a then-rapidly growing electric vehicle fleet.
With slowing sales in some areas and policy changes in Washington, the situation is becoming practically unsustainable.
The Trump administration froze funding for the $5 billion USD electric vehicle charging program last February, although it faces a legal battle with several states to resume payments.
In Canada, government support for charging infrastructure remains strong, although network deployment across the country has lagged behind initial forecasts.
Flo's original plant, located in the Grand-Mère sector of Shawinigan, as well as its U.S. production centre in Auburn Hills, Michigan, will continue to operate. CEO Tremblay said the layoffs are part of a broader "strategic pivot" that will allow the company to focus primarily on operating charging networks, rather than manufacturing.
Flo operates around 100,000 public chargers in Canada and the U.S.
Despite the setback, the company stated that it "remains firmly committed" to supplying chargers for the residential market. To that end, production and delivery of home charging stations are not affected by the layoffs.