The Lion Electric company, recently reborn, has made a controversial decision to void the warranties on hundreds of electric school buses in an effort to cut costs. This move has left many school districts in a difficult position, with stranded assets that cannot be fixed and cannot be sold for replacements.
In a letter sent to exiting Lion Electric customers by Deloitte Restructuring, it was announced that the warranties on all Lion vehicles purchased outside of Quebec are now null and void. This has caused significant challenges for school districts like Herscher CUSD No. 2 in Illinois, where six out of 25 Lion electric buses are in need of repairs.
Similarly, Winthrop Public Schools in Massachusetts are facing issues with their four Lion buses, all of which are currently parked and not in use. Two of the buses require repairs that the district is not willing to invest in due to the buses breaking down frequently.
Yarmouth School Department in Maine is also experiencing difficulties with their two Lion Electric buses, which have rarely worked since their purchase in 2023. Superintendent Andrew Dolloff stated that the buses did not operate at all during the 2024-25 school year.
The new owners of Lion Electric, Groupe MACH, who previously owned the company before it was restructured, have not announced any plans to honor the warranties that were voided. This has raised concerns among customers and stakeholders about the future of the company and its commitment to its customers.
The decision to void warranties on these electric school buses has had a significant impact on school districts across the country, leaving them with unusable assets and no clear path forward. It remains to be seen how Lion Electric will address these issues and regain the trust of its customers.
