St. Gallen’s public transport operator, VBSG, has canceled its contract with Dutch electric bus manufacturer Ebusco for the supply of 12 electric buses, citing the company’s inability to meet contractual obligations due to financial instability. The buses, originally scheduled for delivery in 2025, will now be procured through a fresh tendering process.
The new tender framework is currently being finalized, though delays in deployment appear inevitable, even with a different supplier. Ebusco’s competitors will now have another opportunity to secure the contract, while the Dutch manufacturer grapples with its challenging economic circumstances.
This is the latest in a series of setbacks for Ebusco. In September, Scandinavian transport company Connect Bus canceled an order for 47 electric buses and switched to BYD as its supplier. Internally, Ebusco has undergone significant changes in recent months. Christian Schreyer replaced the previous dual leadership team as sole CEO, and there were additional changes to the company’s supervisory board. These moves are part of a broader reorganization plan aimed at stabilizing the company.
Ebusco’s financial struggles have been evident, with the company reporting a €60 million loss in the first half of 2024. Despite having over 1,600 electric buses on its order books, Ebusco delivered only 98 vehicles in the first two quarters of the year, highlighting operational challenges.
A recent investment from Chinese battery manufacturer Gotion High-Tech offers a glimmer of hope for Ebusco. In November, the company raised €36 million through a share issue, which management described as “essential for the continued existence of the company.” These funds are expected to support Ebusco’s reorganization efforts and bolster its financial position.
While Ebusco continues to struggle with order fulfillment and financial stability, the company remains focused on navigating its challenges. The outcome of its reorganization and the success of new investments will be critical to determining its future in the competitive electric bus market.