Canadian electric school bus company Lion Electric is struggling financially and looking for a bailout, Bloomberg reports.
King on Sunday announced 400 layoffs, representing more than half of its workforce, and said it was halting production at its American plant in Joliet, Illinois. When the plant was announced in 2021, Lion said it would be the largest medium- and heavy-duty electric vehicle in the US.
Lion is one of three companies — including Blue Bird and Thomas Built Bus — that have delivered the majority of electric school buses in the US so far, amid a push to replace dirty diesel vehicles spurred by federal and state incentives.
Lion Electric school bus
Mach Capital, the investment arm of Canadian real estate developer Groupe Mach Inc., is in talks to provide more money to Lion, according to the report, citing an anonymous source familiar with the matter. In 2023, Groupe Mach and the Mirella & Lina Saputo Foundation were among the group of investors that bought more than 90 million Canadian dollars.
The Canadian province of Quebec also gave the Lions 192 million Canadian dollars. Economy Minister Christine Frechette told Bloomberg and other media outlets on Monday that the provincial government is willing to provide additional funding “if the business plan remains, and if there are other players outside of the community.”
Lion C Electric School Bus
Lion is one of a small group of manufacturers to offer electric school buses instead of diesel. In the US, that change has accelerated recently with the rise of state and federal benefits. The EPA has begun distributing $5 billion in funding for electric school buses approved under the Biden administration's infrastructure law, releasing $965 million in 2022 and $1 billion earlier this year. But the outlook for the future is not so good.
Although it included cars in the US, as Canadian company Lion may be targeted by the incoming Trump administration, which is expected to impose a 25% tariff on auto parts shipped across the border. It remains unclear whether Biden's EV-friendly policies will survive under Trump. Both of these features can make Lion electric school buses more expensive for cash-strapped school districts.