SPECIAL REPORT
On the Block
Lion Electric school bus customers have options despite insurmountable debt forcing the manufacturer to auction Written by Carol Brzozowski
S
chool districts that have purchased some 2,000 Lion Electric school buses are in a wait-and-see mode regarding repairs and warranties following the company filing for and receiving protection
from its creditors under the Canadian Companies’ Cred- itors Arrangement Act (CCAA). Compounding the challenge in securing electric school buses are climate-related initiatives on the Trump administration radar. In late January, the U.S. Office of Management and
Budget listed the U.S. Environmental Protection Agency’s Clean School Bus Program—which has helped fund elec- tric bus purchases—as one of the many federal spending programs the Trump administration attempted to freeze in January. Despite a federal judge blocking that move, the funds were slow to start flowing again at this report. Meanwhile, Lion could be acquired through an auction
of its assets by next month. A Lion representative said the company was not bankrupt or in liquidation, per “the recognition of the CCAA proceedings in the U.S. pursuant to Chapter 15 of the United States Bankruptcy Code.” A School Transportation News report about Lion
Electric’s financial status outlined the company’s many layoffs and an SEC filing announcing the resignation of company president Nicolas Brunet in November. At this report, all U.S. employees had been laid off, with only a handful of executives based in Canada still working. In 2023, Lion Electric opened its Joliet, Illinois plant, a move celebrated with much fanfare and investment
18 School Transportation News • MARCH 2025
by elected officials and local business leaders. The 900,000-square-foot facility was hailed as the larg- est all-electric U.S. plant dedicated to medium- and heavy-duty commercial vehicle production. The plant was expected to produce 20,000 school buses a year. In all, Lion Electric has more than 2,200 electric com-
mercial vehicles on the roads across North America, logging more than 62,000 miles a week and more than 32 million driven miles transporting 130,000 children, noted company spokesman Patrick Gervais. Continued delays and challenges associated with the
granting of subsidies to Lion’s clients related to the Canadi- an Zero-Emission Transit Fund program, Gervais added. “Given the capital-intensive nature of its business, the
Lion Group has required significant investment and capital over the years to operate its business,” he explained. “Such investment and capital have come in the form of long- term debt.” He said the timing of EPA Clean School Bus Program funding rounds was also a challenge. Funded by the Bipartisan Infrastructure Law, the
program had been designed to provide $5 billion from fiscal years 2022 to 2026 to replace existing school buses with zero-emission and clean school buses. To date, 1,039 awards have been issued to 1,344 school districts and nearly $2.785 billion of the total $5 billion has been awarded, replacing 8,936 buses. But as of this report, when and if 2024 rebates and subsequent funds are in doubt. The EPA did not respond to a request for
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