MONTREAL — A team of Quebec-based investors has struck an agreement to purchase and revive Lion Electric, providing a fresh start for the beleaguered company.
The Quebec-based company from St-Jérôme announced this news on Thursday night following a lengthy several-month hunt for a purchaser that almost failed to materialize.
Following the Quebec government’s decision not to provide additional direct public funding to Lion Electric—which had filed for creditor protection in December—the agreement was reached. Nevertheless, the province declared it would invest approximately $500 million into a subsidy initiative aimed at electric school buses, thereby indirectly supporting the firm.
Led by Pierre Wilkie, who serves as a director of the firm, along with Vincent Chiara, head of the Montreal-based real estate development group Groupe MACH, this investor coalition is moving forward. On Wednesday, representatives from Lion Electric plan to present the agreement before a justice at the Quebec Superior Court.
An earlier proposal from the investor collective was abandoned following announcements by Quebec’s Economy Minister, Christine Fréchette, who stated it would be unwise to allocate additional governmental financial resources to Lion Electric—a company known for producing electric school buses and trucks—last month. According to media coverage, these potential investors were looking for an injection of around $24 million in public funding.
The province has already made significant investments in the company, with Premier François Legault stating that the government could incur a loss of approximately $140 million.
Following the collapse of that agreement, a spokesperson for the court-appointed monitor stated that Lion Electric would probably be subjected to liquidation.
However, the previous week saw the investors submit a revised, lower offer following verification that Quebec intended to reinstate its incentive scheme for electric school buses, which had lapsed back in March.
The journey to reach our position today was far from simple," stated Guy Martel, who represents Lion Electric, during a court hearing held on Friday. "We have achieved something, yet it falls short of what we initially aimed for throughout this process.
As per the conditions of the accord, Lion Electric will maintain its production facility in St-Jérôme; however, they will terminate employment for certain staff members indefinitely.
On Thursday, the government unveiled specifics about the updated subsidy initiative aimed at electric school buses. The revised plan offers rebates totaling $240,000 per bus purchased, an increase from the previous cap of $175,000. This program has played a crucial role in Lion’s achievements within Quebec; notably, these subsidies apply only to vehicles assembled domestically.
By 2030, Quebec plans to convert 65 percent of its school bus fleet to electric models, under a new initiative set to operate through 2028 with funding totaling $480 million. According to the provincial government, Quebec currently has approximately 1,600 electric school buses among its overall fleet size of roughly 11,500 vehicles. Of these electric buses, about 1,175 have been produced by Lion.
Despite renewing the subsidy program, Quebec eliminated a rule from 2021 mandating that all newly purchased school buses must be electric. A representative of Transport Minister Geneviève Guilbault stated, “Operators can now opt for either electric or diesel-powered buses when updating their fleets.”
The report from The Canadian Press was initially released on May 16, 2025.
Maura Forrest from The Canadian Press
