Taiga Motors Corporation (TSX: TAIG) announced today that Chief Financial Officer Eric Bussières will leave the company to pursue an opportunity outside the powersports industry. His successor will be named at a later date. Bussières will remain with Taiga until July 12 to ensure a smooth transition with the company’s finance and accounting team.
“I would like to thank Eric for his hard work and contributions during his tenure, and wish him all the best in his new role,” said Samuel Bruneau, Taiga’s CEO. “We look forward to continuing building upon the strong foundations of financial rigor instilled across the organization in the initial phase of scaling production.”
Bussières expressed his gratitude, stating, “I want to thank Sam and everyone at Taiga. I leave holding Taiga in the highest regard. I am enormously proud of the innovation we brought to the powersports industry by providing better alternatives to customers for sustainable adventures.”
Following the news, the company’s shares jump more than 10% as of press writing.
Bussières’ departure comes during a period of significant upheaval for Taiga Motors. In April, the company announced a temporary production halt and workforce reduction, leading to a dramatic 51% drop in its stock price. The shares closed at an all-time low of 31 cents on the Toronto Stock Exchange, reducing the company’s market capitalization to approximately $10 million. This marks a significant decline from its peak when the company went public in April 2020 with shares trading above $14.
The company cited a challenging economic environment and an unusually mild winter that adversely affected snowmobile sales as reasons for the production pause. The company announced the layoff of about 70 employees, marking the second major workforce reduction since February when 30 positions were cut.
“In view of the current economic context combined with an unusually mild winter that negatively impacted the snowmobile business, Taiga is in the process of taking several steps to adjust its operations to better align seasonal production timing with dealer inventory levels,” the company stated in a press release. “As such, the Company announced today that it is temporarily pausing its vehicle production and temporarily reducing its workforce accordingly by approximately 70 people.”
Taiga’s ambitious mission under Bruneau to transform the powersports industry with its all-electric vehicles has faced significant challenges. The company has struggled to scale production and has experienced issues with suppliers not meeting contractual obligations.
Taiga Motors last traded $0.28 on the TSX.
Information for this story was found via Sedar and the sources mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
