P.E.I. cancels plans to buy new electric school buses amid Lion Electric's financial troubles

The P.E.I. government has halted plans to purchase more electric school buses due to the financial uncertainty surrounding Lion Electric, the company that manufactures most of the vehicles for the province.

The Quebec-based manufacturer entered creditor protection last month after struggling to repay debts.

P.E.I. Education Minister Rob Lantz said the province recently cancelled its latest request for proposals for new electric school buses, as Lion Electric was the sole bidder.

"We'll get back to a normal procurement and, you know, down that pathway to net zero by 2040 when we've got more confidence in those buses," Lantz told CBC News.

P.E.I. began transitioning its school bus fleet to electric vehicles in 2021, starting with 12 buses. The fleet has since grown to about 100 electric buses, part of a $40-million shared initiative between the provincial and federal governments. 

Despite Lion Electric's financial troubles, Lantz said the company has assured the province that it will continue to service and maintain the existing fleet. In the meantime, the province has had to return to fossil fuels.

"We have recently purchased a small number of diesel buses," Lantz said. "We've got to operate a school transportation system."

Marie-Ève Labranche, a spokesperson for Lion Electric, said in an email to CBC News that the company remains committed to assisting customers with maintenance and servicing.

"At this stage, Lion is not being liquidated, but is rather undertaking various restructuring measures, including a sale and investment solicitation process, in a stable and structured environment," the statement reads. 

"PEI will be able to continue making their warranty repairs following the same claims process."

'I just drive the bus as they give us'

Robert Geiss, president of CUPE Local 1145, which represents more than 300 school bus drivers in P.E.I., said he's also heard about Lion Electric's assurances.

"There's talk of Lion being bought out by other bus companies. If that happens, we've been told that they'll honour any of the warranties, so that won't affect us too much," Geiss said.

However, Geiss said he's concerned whether the company has enough mechanics to service the buses.

Lion recently announced temporary layoffs for 150 workers across Canada and the United States as part of its creditor protection process. This follows four waves of layoffs earlier in 2024.

"It doesn't really bother me much," Geiss said. "I just drive the bus as they give us. I'd like to see Lion continue just because of the fact that we need to service the ones that we have."

Lion bus catches fire in Ontario

The company's financial woes aren't the only issue raising concerns.

Monday morning, a Lion Electric school bus caught fire in Huntsville, Ont., shortly after breaking down.

The Huntsville/Lake of Bays Fire Department responded to the incident and found the bus engulfed in flames. All students, more than 70, had already been evacuated and no injuries were reported.

The department's fire prevention officer, Grant Murchison, said the fire started shortly after students were transferred to a second bus after the first one broke down.

"In this case, the fire did not involve the battery pack," he said, adding the cause of the fire remains undetermined due to the extensive damage.

Lion Electric said in a statement it is gathering information about the incident.