There is renewed hope for struggling Canadian electric bus and truck manufacturer Lion Electric, as a group of investors led by Montreal real estate magnate Vincent Chiara is set to take control of the bankrupt company. The proposed takeover, reported by Bloomberg, aims to provide new capital and steer the insolvent firm away from liquidation, which had seemed imminent.
Lion Electric, the sole manufacturer of electric school buses in Canada, disclosed in its bankruptcy filing that it owes more than $244 million to secured and unsecured creditors. The company’s financial difficulties have been mounting since late 2023, when it began laying off roughly 10% of its workforce amid operational challenges.
Although the company saw a brief improvement after releasing a new truck model and securing a $7.5 million loan in mid-2024, subsequent layoffs and a halted public bailout by the Quebec government pushed Lion Electric closer to liquidation earlier this month.
The Quebec government’s willingness to renew its provincial incentives program for electric school bus buyers signals official support for the takeover. This program plays a critical role in Lion Electric’s business outlook, given its dominant position in the country’s electric school bus market.
The investor group’s offer, which still requires court approval, could provide a lifeline to Lion Electric and enable it to rebuild operations, preserving its role in the growing zero-emission commercial vehicle sector.
Vincent Chiara’s involvement marks a pivotal moment for the company, offering a chance to navigate through its financial turmoil and capitalize on increasing demand for electric commercial vehicles.