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."

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.