Efforts underway in Quebec to rekindle the Lion, a historic project or initiative.
Get ready to hit the road with a fresh wave of changes in Quebec's electric bus landscape! The Legault government, with a twist in its gears, has given a new life to the subsidy program for electric buses, a decision that could potentially revive Quebec-based powerhouse, Lion Electric, and steer clear of liquidation.
The Green Fund's Half-Billion Boost
Over the next three years, around half a billion dollars, drawn from the Green Fund, will be dedicated to this electrifying initiative. The financial assistance for purchasing an electric bus has received a significant boost, too!
Quebec's Strategic Move to Keep Lion Electric on the Road
The renewal of the School Bus Electrification Program is not just a lifeline for Lion Electric but also an essential piece in a deal, which could potentially close by the end of the week. The agreement involves a consortium of savvy investors, including businessman Vincent Chiara, president and founder of Groupe Mach, entrepreneur Pierre Wilkie, and financier Claude Boivin.
The renewal of the School Bus Electrification Program was seen as crucial to finalizing this deal. Quebec maintains that it would have renewed the program regardless, explaining its aim to support school transporters. Yet, the program's revival has undeniably influenced the investors' decision to bid for Lion Electric.
Electric Monopoly Meets Competition
Under the new program parameters, school transporters are no longer forced to buy electric buses when renewing their fleet. They can now opt for buses equipped with traditional thermal engines, fueled by diesel. Interestingly, a pool of buses is also planned for manufacturers Girardin and Bluebird.
The criterion for the final assembly of an electric bus within Canada remains, but Lion remains the only manufacturer to meet this criterion thus retaining a competitive edge in the Canadian market!
Top Gear for Electric School Buses: Faster and Better!
The financial aid for purchasing an electric bus has increased, too. School transporters had complained that the subsidy was insufficient. With the new program, the aid for purchasing an electric bus has climbed from $150,000 or $175,000 to $240,000, offering a bigger push for school transporters to adopt electric buses.
Stabilizing Lion Electric's Future
The renewed subsidy program has given Lion Electric a much-needed boost. Despite the agreement, Lion will close its doors to some employees, but their manufacturing plant in St-Jérôme will continue to churn out electric buses. The subsidy renewal has undeniably put a damper on Lion's bankruptcy filing in December 2021 and provided some much-needed stability for the company's future.
- The increase in financial assistance for purchasing electric buses could potentially aid businesses like Lion Electric in the renewable-energy sector, as they strive to stay afloat in the competitive industry.
- The consortium of investors, including Vincent Chiara, Pierre Wilkie, and Claude Boivin, sees the renewal of the School Bus Electrification Program as an opportunity to secure a stake in the electric bus market, which is part of the strategic move to partner with Lion Electric.
- With the boost in financial aid and the option for school transporters to choose traditional thermal engines, the electric bus market in Quebec becomes more competitive, yet Lion Electric retains an edge due to being the only manufacturer that meets the criterion for final assembly of an electric bus within Canada.
