The warranties on several hundred LionC buses produced by Lion Electric, the Quebec-based manufacturer of electric school buses, have been voided in the U.S.
School districts left on their own
The decision, made by the company's new owners after bankruptcy proceedings this past summer, leaves many American school districts with defective vehicles, no technical support and no possibility of reimbursement.
Lion's new owners, Groupe MACH, a Quebec-based real estate company, took the drastic measure to cut costs. Meanwhile, the bus company—now renamed Lion Bus—continues to accept orders and generate revenue in Canada.
Safety problems affecting Quebec schools
It’s not just south of the border that there are problems. According to CBC and School Transportation News, Quebec's Ministry of Education ordered the immediate removal of several Lion bus models from service after two fires involving electric LionC buses occurred in Montreal on September 9.
The diesel-powered Lion360 models—produced before the 100-percent electric shift in 2017—are also affected.
Lion issued an inspection bulletin requiring a four-hour repair to correct "certain potential anomalies in a sub-component of the air conditioning (HVAC) system."
The instructions require:
- • Mandatory inspection of low-voltage electrical connections
- • Replacement of connectors and fuses
- • The addition of an extra safety fuse in the HVAC control panel
The fixes apply to all Lion360 buses and generations 1 to 3 of the LionC.
American districts trapped
In the U.S., the situation is turning into a disaster. According to Deloitte Restructuring, which is responsible for the liquidation, all Lion warranties sold outside of Quebec are now void. As a result, dozens of school districts are left with unusable and unsellable vehicles.
The Herscher school district in Illinois had to pay out of pocket to maintain part of its fleet. "Six of our 25 electric Lion buses require repairs," explained Superintendent Richard Decman. Same story at Winthrop Public Schools: "Our four Lion buses are parked. Two require repairs that are too costly, and the others break down after a few weeks," lamented Coleen Souza, interim director of transportation.
In Maine, the Yarmouth school district confirmed that its two Lion buses have almost never worked correctly since 2023. "Every time a technician intervenes, the error codes return as soon as he leaves," said Superintendent Andrew Dolloff. No electric Lion buses ran during the 2024-2025 school year.
Groupe MACH in the spotlight
Groupe MACH, already a shareholder in Lion since 2023 to the tune of $90 million (alongside the Mirella & Lino Saputo Foundation), is now being called out for its lack of transparency. Although the decision to cancel the warranties was made by Deloitte as part of the bankruptcy process, MACH has still not announced whether it intends to honour commitments to customers.
Between the loss of trust from American school districts and growing concerns about the safety of Lion buses in Quebec, the Quebec-based manufacturer is going through the most critical period in its history.