A Cautionary Tale Of Lion Electric's Rise And Collapse

26 Aug 2025

A Cautionary Tale Of Lion Electric's Rise And Collapse

Lion electric school bus, a vision that went off the road

By EVWorld.com Si Editorial Team

Lion Electric began in Saint-Jérôme, Quebec, founded in 2008 by Marc Bédard and Camile Chartrand. Their vision was bold: build purpose-designed electric school buses from the ground up. By 2011, Lion launched its first model, and by 2017, it had rebranded and committed fully to electrification.

The company expanded rapidly, secured major contracts, and went public via SPAC in 2021. Its most ambitious move was a 900,000-square-foot factory in Joliet, Illinois, intended to produce 20,000 vehicles annually. But delays, high costs, and low delivery volumes plagued the site. Reliability issues emerged, and Lion’s service network faltered.

Financial pressure mounted. Lion owed over $244 million, and its quarterly deliveries dropped sharply. Investor lawsuits followed. The Quebec government, having invested approximately $140 million CAD, declined further support. In early 2025, Lion entered insolvency and filed for Chapter 15 bankruptcy in the U.S.

Thousands of buses were left without warranty protection. Districts across the U.S. faced idle fleets and no recourse. Some reverted to diesel, others sought costly repairs. Over 900 workers were laid off, and retail investors were wiped out.

Groupe MACH acquired Lion’s assets through a court-approved sale. Their plan: resume production in Quebec, honor warranties only for Quebec-based fleets, and abandon U.S. operations. This pivot raises critical policy questions about procurement safeguards, warranty enforcement, and the risks of scaling clean tech too quickly.

Yet there are paths forward. Districts may form service cooperatives, retrofit buses with new drivetrains, or partner with technical colleges to preserve value. Lion’s collapse is a cautionary tale—but also a chance to rethink how industrial strategy, policy, and community resilience intersect.