Lion Electric’s School Bus Warranties Void, Leaving Districts in a Bind

In a stunning turn of events, Lion Electric, a company dedicated to transforming school transportation with electric buses, has taken a drastic step that’s left numerous school districts facing costly repairs and potential stranded assets. In an unexpected move to cut costs, the company has voided the warranties on all electric buses purchased outside its home province of Quebec, leaving dozens of school districts struggling to keep their fleets operational.

The issue emerged after a letter issued by Deloitte Restructuring, which now oversees the company, stated that warranties would no longer be honored on Lion Electric buses purchased outside of Quebec. This announcement has left districts like Herscher CUSD No. 2 in Illinois, which relies on Lion Electric buses, with mounting problems.

“We are working with alternate vendors at the expense of the school district to help keep our electric buses functional and on the road,” said Dr. Richard Decman, Superintendent of the Herscher district. “Currently, six of our 25 Lion electric buses need some type of repair.”

This situation is becoming all too familiar for other districts as well. Coleen Souza, interim transportation director for Winthrop Public Schools, revealed that the district's four Lion Electric buses are currently out of service. Two buses require expensive repairs that the district is hesitant to invest in, as the buses frequently break down after just a month of use.

The Yarmouth School Department in Maine is also feeling the impact of Lion Electric’s failure to honor its warranties. Despite purchasing two Lion Electric buses in 2023, with state funding, the buses have rarely been operational. Superintendent Andrew Dolloff shared that they had experienced repeated errors and delays in getting technical support for the buses, which resulted in the buses being non-operational during the 2024-25 school year.

As these issues have unfolded, many districts are left wondering why their electric buses—purchased with the hope of reducing their carbon footprint and operational costs—are now putting an unnecessary financial strain on their budgets. Even more troubling is the silence from Lion Electric’s new owners, Groupe MACH, who also happen to be the previous owners of the company. After stepping in to “rescue” Lion Electric earlier this year, Groupe MACH, along with the Mirella & Lino Saputo Foundation, purchased $90 million in equity in the company. However, to date, they have not addressed the growing concerns surrounding the warranty issue.

The decision to void the warranties was made by Deloitte’s bankruptcy team after Lion Electric faced financial difficulties earlier this year. However, it is Groupe MACH’s lack of response that has made the situation even more frustrating for the school districts. While these electric buses represent a significant investment in clean transportation, the reality of maintenance costs, warranty cancellations, and broken promises has led to a crisis of confidence in the company’s ability to support its products.

For many districts, these problems could have lasting impacts. The warranty voiding not only leaves buses inoperable but could also result in expensive repairs that stretch already tight budgets. The push for electric vehicles in the school transportation sector—already an uphill battle for adoption—has now been further complicated by reliability and service issues. Districts that once looked to Lion Electric as a forward-thinking partner are now left to deal with the consequences of a broken system that threatens to stall their green initiatives.

Lion Electric’s troubles come at a time when many are still optimistic about the potential for electric vehicles to revolutionize the transportation sector. But with major issues such as this one affecting users on the ground, the question remains: will companies like Lion Electric be able to rebuild their credibility, or has this crisis signaled a serious blow to the future of electric school buses?

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