Lion’s difficulties: he worries about his 75 school buses: “I have a dark cloud over my business”

Family SMEs who had purchased buses from Lion Électrique by the dozen to make the electric shift advocated by the Legault government fear being stuck with vehicles that are difficult to repair if the company, crushed by debt, ends up going bankrupt.

• Also read: The underside of the Lion Électrique fiasco: “They spent like there was no tomorrow”

• Also read: “Largest order in Lion’s history”: zero trucks delivered out of 50 to CN

“If Lion closes its doors for x reasons, there will be the issue of parts and guarantees,” worries in an interview with Journal Stéphane Boisvert, president of Autobus Groupe Séguin, which has 356 school buses, including 75 from Lion Électrique.

“I was talking about it with my fleet manager this morning: “What happens if we no longer have access to parts? We could go and get them directly from the supplier,” adds the one who says he likes Lion’s product, but sees this “black cloud” looming on the horizon.

In recent days, The Journal spoke to several carriers smaller than him who did not want to be identified, while the financial health of the manufacturer is under attack.

“I have problems with new Lion vehicles, often with electronics and heating units,” confided another manager, who has difficulty imagining what happens next.

At the beginning of November, The Journal reported that Quebec is ready to help Lion, provided that the private sector makes its contribution. Among Lion’s significant shareholders are Power Sustainable (34.1%) and Marc Bédard (11.5%).

This comes as Lion has “significant uncertainty that may cast significant doubt on the Company’s ability to continue as a going concern.”

1300 buses

However, what concerns above all the number 1 of Autobus Groupe Séguin, Stéphane Boisvert, is that the deadlines for obtaining Lion bus parts are stretching out.

“If Lion is no longer in business, it becomes very serious for the 1,300 Lion vehicles that circulate on our roads,” summarizes the man who also wears the hat of administrator of the Federation of Bus Transporters.

“What do we do tomorrow morning? Is there a plan B from the government to continue electrification? wonders aloud the CEO of the Federation, Luc Lafrance, who has urgently discussed it in recent days with his panicked members.

In-game assists

The question of financing also plagues transporters, who were forced to purchase expensive electric buses with the 2021 decree.

Quebec is still offering assistance of $150,000 for the purchase of a Lion electric school bus (more than $300,000, depending on the model), but another boost of $12,900 per bus, which came from the ministry of Education, has just fallen.

“The program was cut. We met with the Prime Minister’s office to get it back,” concludes Luc Lafrance, CEO of the Bus Transport Federation.

Lion did not respond to questions from Journal.

Girardin does not wish to buy Lion Électrique

If Lion Électrique were put up for sale, electric school bus manufacturer Girardin would not be interested in buying its competitor because the Saint-Jérôme company has “too many accumulated risks.”

“We have no interest in Lion. It would be duplicating a lot of things and there are too many risks accumulated in the business itself,” summarizes Steve Girardin, vice-president of the Girardin Group.

Last Tuesday, Groupe Girardin confirmed the acquisition of a bus manufacturing plant located in Plattsburgh, New York.

“When we saw Nova Bus close, we jumped at the opportunity to open a dialogue with them to see how to buy their factory and get their employees back,” continues Steve Girardin.

But there is no question of buying any assets of Lion in financial difficulties.

In North America, IC Bus, in Oklahoma, Blue Bird, in Georgia, Thomas, in North Carolina, and Micro Bird (Girardin), in Drummondville, make electric school buses.

Girardin builds Micro Bird minibuses and distributes Blue Bird full-size electric school buses to us.

“Obvious favoritism”

In Drummondville, the Girardin plant with 600 employees is being expanded.

Last July, a new generation of electric minibuses with a range of more than 300 kilometers developed and assembled here was unveiled.

Three years ago, the mayor of Drummondville, Girardin and Thomas accused Quebec of creating a monopoly with its subsidy of $150,000 for each school bus purchased and assembled 100% in Quebec.

At the time, Michel Daneault, a vice-president of Autobus Girardin, went far as to speak of “obvious favoritism”.

– With the collaboration of Sylvain Larocque