Lion Electric Voids U.S. Bus Warranties in Restructuring
A court monitor transferred all U.S. warranties into a wind-down entity, leaving districts from Maine to California seeking legal or operational alternatives.
Overview
- On July 15, a court-appointed monitor notified U.S. customers that their warranties and purchase orders were shifted into a corporation slated for bankruptcy, so they will not be assumed by Lion Electric.
- Districts including Maine’s Yarmouth School Department and Los Angeles Unified say they are considering legal action, alternative service contracts or fleet replacements after losing warranty coverage.
- Lion Electric’s May acquisition by a Quebec investor group came with assurances that warranties on its roughly 1,000 Quebec-operated buses will continue to be honored.
- An email from clean-energy nonprofit CALSTART indicates Lion Electric plans to relaunch U.S. service support through new locations and partnerships in markets such as California.
- The warranty voids stem from Lion Electric’s December creditor protection and its refocus on electric bus assembly and sales within Quebec, backed by a $480 million provincial subsidy framework.