Quebec-based Lion Electric, until recently, was a darling in the battery-electric startup scene thanks to its EV school bus and Class 6 and 8 tractors.
The party ended late last year when Lion filed for bankruptcy protection in both its native Canada and the US where, to much fanfare, it built and began producing those EV buses at its now-shuttered 900,000 square-foot Joliet, Illinois plant.
[Related: Lion Electric files for bankruptcy]
Mass layoffs were also announced, leaving Lion with a skeleton staff to manage daily operations.
While Lion's problems have yet to be resolved, there appears to be some movement towards finding an investor.
According to the Canadian Press, a Quebec Superior Court-appointed bankruptcy monitor has filed a report stating Lion has received letters of intent from potential buyers and liquidators earlier this month. There are reportedly 169 possible investors along with 15 others who have expressed interest in liquidating Lion's assets, with seven of them having already visited the company's manufacturing sites in both countries.
Lion has received a creditor protection extension until April 4, 2025.
Company representatives did not reply to Clean Trucking when seeking further comment. No deadline was given regarding a restructure plan due date.
EPA investigates
Meanwhile, the Environmental Protection Agency (EPA) has sent federal agents to a Maine school district that purchased several EV school buses from Lion that have since been pulled from service due to severe technical issues.
Per The Portland Press Herald, federal agents recently visited Winthrop Public Schools to meet with Superintendent Becky Foley and director of transportation Josh Wheeler to see first-hand the four buses the district purchased in late 2023. The buses began experiencing technical problems almost immediately. To date, Lion has failed to repair a single vehicle.
“I met with an EPA special agent last week to see if there was any fraud committed by Lion,” Foley said. “I think whatever resolution may occur will take some time, and I will keep the board posted.”
A total of 30 Maine school districts purchased a total of 72 electric buses via the EPA's incentive program under the Biden administration. Nine of the districts bought Lion's zero-emission buses to replace aging diesel-powered buses. Only Lion's buses have experienced problems. Not surprisingly, the company is no longer included in the state's EV bus purchase program.
Lion's buses have reportedly experienced power steering-related failures and Winthrop officials have expressed frustration with the company's inability to provide a timely fix.
A former Lion technician previously warned federal and state officials about safety issues, stating the buses are "more like a science project than a validated, road-legal vehicle."
Last month, a student-packed Lion bus caught on fire on the way to school in Ontario, Canada. Fortunately, the fire did not start while the bus was in motion and the driver was able to pull off to the road side and get everyone to safety
[Related: Lion Electric EV school bus catches fire on way to school]
