A few months ago, Lexus unveiled the 2026 RZ in its European-spec form, featuring steer-by-wire technology and simulated gears. Now, the updated RZ is headed to the North American market, and it comes with several upgrades including a new and improved battery, more power, and increased driving range.

Three versions of the 2026 RZ will be available in the US. Leading the charge at the base of the lineup is the new RZ 350e. It comes with a 74.69 kWh battery pack and a front-mounted electric motor producing 221 horsepower, 20 more than the outgoing RZ 300e. Lexus claims this version can reach 60 mph (96 km/h) in 7.2 seconds and offers an estimated range of around 300 miles (482 km) on a single charge.

Read: 2026 Lexus RZ Gets Yoked Steer-By-Wire And Simulated Gears

Next up is the RZ 450e AWD, which retains the same 74.69 kWh battery but adds an additional electric motor at the rear wheels, boosting the total output to 308 horsepower. This reduction in 0-60 mph time to 4.9 seconds is matched by a range of 260 miles (418 km).

Finally, there’s the new flagship RZ 550e F Sport AWD with a dual-motor setup. It swaps in a slightly larger 76.96 kWh battery, bumps the horsepower to 402, and cuts the 0-60 time to a much quicker 4.1 seconds. However, with an estimated driving range of 225 miles (362 km), it’s safe to say the RZ 550e isn’t exactly setting the standard for range in the EV market.

All 2026 RZ models heading to North America will come equipped with an NACS plug, and Lexus claims the battery can be charged from 10% to 80% in under 30 minutes. Additionally, every model now comes standard with an 11 kW on-board AC charger, a noticeable upgrade from the 7 kW unit found in the previous generation.

Curiously, it does not appear as though new RZ models to be sold in North America will have the same steer-by-wire as those sold internationally, including in Europe. Lexus has made no mention of the system in its local press release, and images released of the locally-specced model show it with a normal steering wheel, rather than the yoke that accompanies the steer-by-wire setup.

Virtual Shifts and a Spiffed-Up Interior

What we do know is that the RZ 550e F Sport AWD is the only version to offer Toyota’s M Mode virtual gear shift, which uses paddle shifters and is supposedly designed to provide “a sportier, more responsive driving feel.” Whether or not that’s true remains to be seen, but it certainly sounds like something designed to make driving an electric vehicle feel just a little more interesting.

Inside, the 2026 RZ gets a few upgrades as well. A panoramic glass roof is now available, and it can switch from clear to opaque with the push of a button. The RZ 550e also gets some stylish black Ultrasuede trim with blue contrast stitching.

Lexus hasn’t revealed official pricing for the refreshed model yet, but it has confirmed that sales will begin later this year. Based on the pricing of the 2025 model year, the base models are expected to start around $45,000, with the new flagship RZ 550e likely pushing beyond $60,000.

Despite the uncertainty created by newly imposed tariffs, sales of electrified vehicles are still surging, with BEVs (battery electric vehicles) and PHEVs (plug-in hybrids) flying off the lots in record numbers. And it’s not just North America leading the charge, as markets like China and Europe are seeing even more impressive growth.

As we reported last month, global sales of BEVs and PHEVs had already topped 4.1 million through the first three months of the year. Now, with April’s figures in, the total for the first four months stands at an impressive 5.6 million units, according to data from RhoMotion.

April alone saw 1.5 million electrified vehicles sold, marking a 29 percent increase compared to the same month last year. That said, it’s worth noting a slight dip of 12 percent from March, which might suggest that the initial rush to purchase before the full impact of tariffs hit has already cooled off.

Read: Electrified Sales Are Surging Globally But A Dark Cloud Is Gathering

Continuing to lead the charge was China. A total of 3.3 million BEVs and PHEVs have been sold this year, representing a 35% jump from last year. Sales slipped 9% in April compared to the month prior, but were up 32% compared to April 2024.

It’s worth noting that the US and China recently announced a reduction in tariffs, including eliminating some and suspending others for 90 days. However, this move primarily affects parts in the auto industry, as Biden’s previously imposed electric vehicle tariffs remains firmly in place.

Across the Atlantic, North America has seen steady, if not explosive, growth. Sales have reached around 600,000 vehicles this year, a 5% increase from last year. While we don’t have a breakdown for the US, Canada, and Mexico, it’s reported that sales in Mexico have nearly doubled year-to-date.

JAN-APR EV & PHEV SALES

After a rough 2024 for EV and PHEV sales in Europe, things are looking considerably brighter this year. In the first four months alone, sales have surged by 25%, reaching 1.2 million vehicles. BEVs are leading the charge, with a 29% increase in sales year-to-date, outpacing the 16% growth in PHEVs. Germany (+42%), Italy (+56%), Spain (+57%), and the UK (+32%) are all reporting significant increases in sales. However, France is still struggling, with sales down 14% so far this year, a decline largely attributed to cuts in consumer incentives.

As Charles Lester, Rho Motion’s data manager, points out, “Ongoing tariff negotiations are dominating talk in the electric vehicle industry, but quietly, domestic manufacturers in China and the EU continue to perform well and grow market share.”

In April of last year, Honda unveiled plans to invest CA$15 billion (US$11 billion) into a full-fledged electric vehicle supply chain in Canada, which would include an EV plant and a standalone battery facility in Ontario. Fast forward 12 months, and the auto industry is a very different landscape, thanks in part to Donald Trump’s return to the Oval Office. As a result, Honda is now pushing back its Canadian EV investments by “approximately” two years.

In a letter sent to Honda shareholders, the automaker attributed the delay to the current slowdown in EV demand. The company reassured investors that it’s keeping a close eye on market trends but stopped short of providing a specific timeline for when the project will get back on track.

Read: Honda Pours $11 Billion To Build EVs In Canada’s Biggest Auto Investment Ever

Honda’s CEO, Toshihiro Mibe, explained during a quarterly earnings press conference that the company will need to “observe what is happening” over the next two years before making any final decisions on the timing of the project. Meanwhile, Honda Canada spokesperson Ken Chiu told CTV News that there are no plans to cut production or jobs locally, despite the delays.

EV Sales Still Climbing, Just Not as Fast as Expected

While Honda claims the postponement is due to a slowdown in EV demand, the reality is that EV sales are still rising in both Canada and the US. In fact, battery-electric vehicles accounted for 11.4% of all new car sales in Canada last year, and 8.1% in the US. True, demand hasn’t accelerated as rapidly as many hoped, prompting automakers to reconsider their EV strategies, but it’s not as though EVs are suddenly unpopular.

A Delayed Investment with Major Implications

Honda’s CA$15 billion commitment was previously hailed by former Prime Minister Justin Trudeau as the “largest auto investment in Canada’s history.” The plan called for a battery plant with an annual capacity of 36 GWh and an EV assembly plant capable of producing up to 240,000 vehicles annually starting in 2028.

In light of the delays, Honda also confirmed it would shift some the CR-V production to its plant in Ohio to mitigate the impact of President Trump’s tariffs on the company’s operations.

“There is room to increase the production capacity in the United States, and we are trying to look into what will happen as a result of that,” Toshihiro Mibe added. “In the midterm, if the tariff measures are to be in place for a long time, then we will have to increase our production capacity in the United States.”

The auction of electric school bus and truck manufacturer Lion Electric Company is moving forward after a last-ditch effort to obtain government funding from the province of Quebec fell through.

Christine Fréchette, Quebec’s minister of economy, innovation and energy, posted on X last week that the Quebec government will not reinvest in Lion after passing on a recovery plan that was submitted to save the manufacturer but on a limited scale.

“This is a difficult, but responsible decision. It’s a local company that offers an innovative product that contributes to the energy transition. The government has a responsibility to support the growth of Quebec businesses,” she posted. “We believed in Lion’s potential, but the submitted recovery plan did not justify the re-injection of significant government sums. Unfortunately, one thing is clear: Granting new funds to Lion Electric would not be a responsible decision.”

On Monday in a Quebec court, a representative of Deloitte that is overseeing the insolvency said without the additional funding all remaining Lion assets will need to be sold.

The court lifted a stay on the auction managed by Deloitte may proceed after issuing a stay in March while Lion sought the additional funding.

The company reportedly owes $244 million to secured and non-secured creditors. A Lion Electric spokesman had no comment when asked by School Transportation News.

Bloomberg News reported that an investment group created the recovery plan that would have resulted in Lion Electric only manufacturing electric school buses going forward out of its St. Jerome plant. But the province already lost $128 million U.S. in investments into Lion with the Canadian federal government losing another $30 million U.S. Ottawa had also invested in Lion.

Public Money at Risk in Lion Electric:

 

o 2021: $19 million Canadian from Investissement Québec (IQ) to purchase shares
o 2021: $37 million from a loan offered by Quebec for the battery pack plant
o 2021: $21 million from the Ottawa loan for the battery pack complex
o 2022: $15 million in a loan from the Caisse de dépôt et placement du Québec
o 2023: $98 million loaned by IQ, the Fonds de solidarité FTQ, and Fondaction CSN
o 2024: $7.5 million in a loan from the Quebec government

Source: La Presse

Power Corp. of Canada, according to Bloomberg, was the largest Lion shareholder with a 34-percent stake but has already written down its Canadian $81 million position in the company to zero.

Montreal-based online newspaper La Presse broke the news Wednesday, reporting that an  unnamed U.S. investment firm expressed serious interest in purchasing the Lion assets, but the Quebec proposal had been the most promising.

La Presse also reported that Lion will likely be sold off in parts, which would mean the end of the company. It laid off all its employees, including those in the U.S., and ceased operations except for a select few senior executives working out of Quebec to try and salvage the company. Deloitte is overseeing the the company’s insolvency proceedings and an auction of its assets.

There are about 2,000 Lion Electric school buses at school districts and school bus companies across North America that will need maintenance and customer service going forward.

This is a developing story.

---

Related: Lion Electric Customers Have Options Despite Insurmountable Debit Forcing the Manufacturer to Auction
Related: Update: Lion Electric Defaults on Credit Repayment, Says It is Avoiding Bankruptcy
Related: Brunet Resigns as Lion Electric President Amid Company Battle to Stay Solvent

The post Update: Quebec Government Passes on Saving Lion Electric, Company’s End Imminent appeared first on School Transportation News.

Slate Auto thinks it can triumph where Lordstown, Fisker, Byton and others have failed. The new US-based startup is working on a family of EVs that will reportedly start at just $25k and could be on sale before the end of 2026. And beyond that incredible price, one of the features that could make people take note is a clever piece of tech from Canada that promises to transform the driving and ownership experience.

The tech comes from Exro, which has developed its own Coil Driver inverter. The technology has several advantages, one of which is that it removes the need for a traditional on-board charger that’s necessary when converting AC power from your house to DC for charging an EV.

Related: Slate Auto Teases 3-Door SUV That Looks Like A Range Rover Classic

Ditching the converter makes the EV lighter and also cheaper to build – a big priority when you’re targeting a $25k retail price. But it also allows for faster AC charging, giving the possibility of sucking in 19 kW, with up to 80 kW possible in the future, according to Driving.ca, which broke the story. That doesn’t just mean easier charging at home, but would make it much easier for the global charging network to expand, because it removes some of the need to build expensive DC charging stations.

Another plus point to Exro’s tech is its coil-switching system. This effectively creates multiple virtual power and torque profiles in one motor, each configured to best suit what the driver and vehicle needs at that moment. The result is more bottom end torque and more top end power than with a conventional motor, plus greater efficiency.

Michigan-based Slate Auto is believed to be backed by Amazon founder Jeff Bezos, and has plans to bring electric power to the masses with simple, low-cost EVs. So far courtesy of an unconventional marketing campaign we’ve seen a small gray pickup and two different two-door SUVs, one with an upright rear window and the other with a hatchback-style slope to its tail.

Little else is known right now, but that’s set to change on April 24 when Slate will reveal more details, hopefully including whether Trump’s tariffs on auto goods entering the US from Canada will throw a spanner in plans to use Exro’s smart technology. Although Exro has facilities in both Canada and the US, it looks like the manufacturing base is north of the border.

H/T to Fred!

Lead image: Exro/TheManiFamily, TikTok

The decision to mandate video cameras and monitors on school buses to allow improved detection of students at stops, effective November 2027, dates back to a 2020 Transport Canada’s Task Force on School Bus Safety. And while the so-called perimeter visibility systems are expected to improve school bus safety, questions remain.

Patricia Turner, territory manager for school bus video manufacturer Gatekeeper-Systems, was a member of the Task Force created by the Council of Ministers Responsible for Transportation and Highway Safety. The goal was to review safety standards and operations inside and outside school buses.

Additional members included different levels of government, manufacturers, school boards, bus operators, labor unions and safety associations.

“We all came together to discuss what could be put on school buses to assist in keeping children safer,” she said, adding that the Task Force began with bi-weekly virtual meetings that turned into monthly meetings. “We were discussing what technology is out there that can help keep children safe.”

By February 2020, the Task Force released a report, Strengthening School Bus Safety in Canada, that identified four ways to improve school bus safety: Infraction cameras, extended stop signal arms, exterior 360 cameras, and automatic emergency braking.

While the Task Force report did not recommend three-point seatbelts, it recognized “that seatbelts can provide an additional layer of safety on school buses in certain rare but severe collision scenarios,” the report states. “As such, it would be prudent to continue working through the considerations associated with seatbelt installation and use (e.g. consequences of misuse, emergency evacuations, liability) and to encourage manufacturers to develop additional occupant protection features to complement the school bus design, such as energy-absorbing side structure padding and inflatable ‘curtain’ airbags.”

Turner explained that the Task Force selected Gatekeeper as a pilot project supplier for testing perimeter visibility systems initiative in April 2021. The company installed 360 Surround Vision and Student Protector systems on school buses in British Columbia and Ontario.

Transport Canada announced Feb. 3 that, “the Government of Canada is mandating perimeter visibility systems as a new feature to improve school bus safety,” a press release states. “These systems help drivers detect children around the bus while it is stopped or traveling slowly.”

The statement continues, “This technology offers enhanced visibility beyond what mirrors alone can provide.”

Starting in November 2027, all new school buses are to be equipped with perimeter visibility systems with the option to install stop-arm infraction cameras. Canada becomes the first country to require new school buses to be fitted with cameras.

Turner explained that Gatekeeper’s 360 Surround Vision System consists of four high-definition, wide-angle external cameras mounted strategically around the school bus—front, back, left and right. These cameras capture and stitch together real-time, panoramic video, giving drivers a comprehensive, live view of the vehicle’s perimeter to eliminate blind spots. While the Transport Canada mandate does not require camera systems to include recording capability, and the cameras would only be viewable for live look-in, Gatekeeper’s system can easily be upgraded to record video footage with Gatekeeper’s Mobile Data Collector (MDC) for easy retrieval and review.

“This will be an aid to the drivers to even going around the corner, making sure that they don’t take the corner too sharply,” she explained. “And [it’s] one more tool to keep them feeling empowered to keep children safer.”

Turner added that school buses are the safest way to transport children to and from school, more so than any other means of transportation. However, she noted that personal vehicles are being equipped with upgraded technology and that same technology should be applied to school buses.

“That is because school buses are built, inside and out, to protect children, noting that while buses, particularly school buses, are among the safest modes of transportation available, there are opportunities for improved safety,” she said.

---

Related: As Camera Systems Evolve, IT Collaboration Necessary
Related: Rhode Island District Adds School Bus Video to Reduce Illegal Passing
Related: Transportation Technology Super Users Share Benefits of Working with IT Departments
Related: STN EXPO Panel Discusses Trends in School Bus Safety Technology

---

Yet questions about the requirement remain. Rich Bagdonas, vice president of business development for school bus contractor Switzer-CARTY Transportation Services, said he was “surprised” to hear the mandate when it was announced in February.

“Safety is paramount,” he said. “[Cameras are] a tool, but we can never have an over reliance on technology, because we still need to have the drivers trained very thoroughly. This is something that we will be able to add to enhance safety. But we always have to keep in mind that when we train drivers that we have to always have our eyes open on the road all the time, too. And we cannot just rely on the technology to provide the safest school ride possible.”

He explained that he doesn’t want the cameras to be a distraction to school bus drivers. For example, he fears they will watch the cameras and not the road.

He added that bus operators won’t see the full effect of the systems until September 2028. Currently, Switzer-CARTY does not have any external cameras on its buses but does have internal cameras on about 10 percent of its fleet based on customer specifications.

The company is in the process of testing external camera systems and installing a couple on school buses in anticipation of the new regulation, “just so we have a bit of a bit of an idea of what it is,” Bagdonas said.

Unlike the interior cameras and exterior stop-arm cameras that record footage, he noted the mandated systems will provide live feeds.

Camera Upkeep & Cost 

Bagdonas said there are still questions to be answered on the new regulation. For example, how much will the cameras cost to add to the buses, and what will maintenance of the systems look like, especially in the winter.

“Sometimes you get some dirt on the back of the [cameras], so we’re going to have to monitor and ensure proper maintenance of the camera systems to ensure the technology is working the way it’s intended,” he said. “And then also there’s going to be a cost component. We don’t know what that cost component is, but that cost component is going to be transferred to us in the cost of the bus, and then we’ll have to determine on how we can see about getting some compensation for this safety feature from our customers.”

All camera systems require ongoing maintenance, Turner said. She noted that while there should be a minimum annual inspection to ensure correct positioning and the connections are functional, they will also need to be cleaned, especially during winter months.

She explained that Gatekeeper’s camera systems are specifically designed and tested to perform reliably, even in harsh winter conditions. She recommended that during routine pre-trip inspections, drivers should quickly verify that camera lenses are clear of residue, snow, or dirt and clean them as needed to ensure optimal visibility.

Bagdonas said Switzer-Carty customers are aware of the new mandate and the company is engaging with stakeholders and bus operators on next steps. He added that because the mandate doesn’t take effect for another year and a half, there’s still time to work through the details.

The post Canada Becomes First Country to Mandate External School Bus Surveillance Feeds appeared first on School Transportation News.

GM had high hopes for their BrightDrop brand, but that enthusiasm waned and the vans were rolled into the Chevrolet lineup. While that move was designed to boost sales and availability, it hasn’t helped much as hundreds of unwanted vans have been piling up.

More: BrightDrop Becomes Part Of Chevrolet

Given the growing inventories, it’s no surprise that the company is temporarily halting production at CAMI Assembly in Ingersoll, Ontario. The Canadian plant started BrightDrop production in late 2022 and employs more than 1,200 people.

Temporary Layoffs and Production Shifts

According to Unifor, GM will initiate temporary layoffs on April 14 and then bring workers back for limited production in May. Production will then end again to allow for retooling for assembly of the 2026 model.

When production resumes in October, the plant will be dropped down to a single shift for the foreseeable future. The union says this will result in the “indefinite layoff of nearly 500 workers.”

Unifor National President Lana Payne described the moves as a “crushing blow” and called on the automaker to “do everything in its power to mitigate job loss during this downturn.” She also called on the government to step up and support Canadian auto workers as well as Canadian-made products.

Payne was particularly adamant about the latter as she pitched the 400 and 600 vans as a “smart choice for Canadian business, government agencies, and for our economy.” That’s a not so subtle hint that she wants the government to buy some of the electric delivery vans.

While BrightDrop’s struggles are far from new, Payne used the opportunity to attack the Trump administration. She accused the United States of creating “industry turmoil” and  said “Trump’s short-sighted tariffs and rejection of EV technology is disrupting investment and freezing future order projections.” She went on to claim this is “creating an opening for China and other foreign automakers to dominate the global EV market.”

Pricing Dilemma

As for the vans themselves, BrightDrop’s offerings start at $77,900, providing up to 614.7 cubic feet (17,406 liters) of cargo space and a combined range of up to 272 miles (438 km).

However, rival electric vans are far cheaper as the Ford E-Transit Cargo starts at $51,000 while the Mercedes eSprinter can be had for $61,180. That’s a bit of an apples to oranges comparison, but it’s not hard to see why hundreds of BrightDrop vans are sitting on dealership lots.

Despite the problems, Unifor noted the company is committed to CAMI Assembly and the 2026 vans will be getting “upgrades.” What those are remain to be seen, but hopefully a smaller battery pack is on the way to reduce pricing.

Well, that took a minute, didn’t it? We’re talking about Tesla‘s response to the accusations that it sold a suspiciously huge number of cars in Canada right before the country’s EV rebate program was about to end. Critics and officials question if these were actual sales and whether the company was just gaming the system instead.

So what exactly happened in Canada? In early March, it came to light that four Tesla stores sold 8,653 cars in just three days and claimed C$43.1 million (US$30M) in rebates. This means that each store sold an average of 30 Teslas per hour, 24 hours a day, even when they were supposedly closed, for this three-day period. And if you believe that, I know someone who has a bridge to sell you.

Tesla Claims It Was All Legal, Officials Should Know Better

However, according to Electrek, in a letter dated March 28, Tesla’s director of sales and service for Canada, Fereshteh Zeineddin, says that those filings were normal and that Transport Canada, the government department responsible for the incentive program, should know better.

More: Tesla Accused Of Gaming Canada’s EV Rebate Program After 4 Stores Sold 2 Cars Per Minute Wiping Out $43M In Grants

He explains that many of these rebates were for cars that were already sold but dealers hadn’t simply filed for them yet. Thus, according to the EV maker, it wasn’t really a shady practice on Tesla’s part – just a case of its staff getting their priorities straight as the electric vehicle subsidy program was about to end. The company says that backlogged files were allowed anyway, so it did nothing wrong. Furthermore, these weren’t money that would end in Tesla’s pockets; rather, as per the program, dealers would offer the incentive to buyers and then get reimbursed by the government.

Frozen Rebates Must Be Paid, Or Else…

Tesla also took issue with Canada’s Transport Minister Chrystia Freeland ordering the rebates to be frozen “in order to fully examine each claim individually and determine whether all are eligible and valid,” as she told the Toronto Star. It adds that, due to this investigation, its employees are viewed negatively by the public and have been subjected to verbal abuse and harassment, and if Transport Canada doesn’t resume payments, it may pursue legal action.

Until the investigation is over, we have no way of knowing whether Tesla is telling the truth or not so, until then, it is presumed innocent until proven guilty. It is worth noting, however, that according to the National Post, Tesla deliveries in Canada plunged some 70 percent between December 2024 and January 2025, which makes this sudden surge peculiar. And if we had to guess, the huge drop in sales and the harassment incidents might be the result of Elon Musk getting increasingly political, not just in the US but wherever he sees fit, and not caused by Transport Canada’s investigation.

Bonus Irony: Musk’s Take on Canada

Speaking of Musk and Canada, here’s a bit of irony. Despite holding a Canadian passport and having lived there from 1989 to 1992, Musk recently posted on X that “Canada is not a real country.” He was responding, apparently in jest, to his political buddy Donald Trump’s suggestion that Canada should be annexed as the 51st U.S. state. Maybe he’s just trolling. Or maybe he’s trying to test how much diplomatic damage he can do from his phone.

Whatever the case, the Canadian government doesn’t seem amused—and it’s making very clear that Tesla’s C$43.1 million rebate claim isn’t going to slide through unchecked.

School districts that have purchased some 2,000 Lion Electric school buses are in a wait-and-see mode regarding repairs and warranties following the company filing for and receiving protection from its creditors under the Canadian Companies’ Creditors Arrangement Act (CCAA).

Compounding the challenge in securing electric school buses are climate-related initiatives on the Trump administration radar.

In late January, the U.S. Office of Management and Budget listed the U.S. Environmental Protection Agency’s Clean School Bus Program—which has helped fund electric bus purchases—as one of the many federal spending programs the Trump administration attempted to freeze in January. Despite a federal judge blocking that move, the funds were slow to start flowing again at this report.

Meanwhile, Lion could be acquired through an auction of its assets by next month. A Lion representative said the company was not bankrupt or in liquidation, per “the recognition of the CCAA proceedings in the U.S. pursuant to Chapter 15 of the United States Bankruptcy Code.”

A School Transportation News report about Lion Electric’s financial status outlined the company’s many layoffs and an SEC filing announcing the resignation of company president Nicolas Brunet in November. At this report, all U.S. employees had been laid off, with only a handful of executives based in Canada still working.

In 2023, Lion Electric opened its Joliet, Illinois plant, a move celebrated with much fanfare and investment by elected officials and local business leaders. The 900,000-square-foot facility was hailed as the largest all-electric U.S. plant dedicated to medium and heavy-duty commercial vehicle production. The plant was expected to produce 20,000 school buses a year.

In all, Lion Electric has more than 2,200 electric commercial vehicles on the roads across North America, logging more than 62,000 miles a week and more than 32 million driven miles transporting 130,000 children, noted company spokesman Patrick Gervais.

Continued delays and challenges associated with the granting of subsidies to Lion’s clients related to the Canadian Zero-Emission Transit Fund program, Gervais added. “Given the capital-intensive nature of its business, the Lion Group has required significant investment and capital over the years to operate its business,” he explained. “Such investment and capital have come in the form of longterm debt.”

He said the timing of EPA Clean School Bus Program funding rounds was also a challenge.

Funded by the Bipartisan Infrastructure Law, the program had been designed to provide $5 billion from fiscal years 2022 to 2026 to replace existing school buses with zero-emission and clean school buses. To date, 1,039 awards have been issued to 1,344 school districts and nearly $2.785 billion of the total $5 billion has been awarded, replacing 8,936 buses. But as of this report, when and if 2024 rebates and subsequent funds are in doubt. The EPA did not respond to a request for comment on Lion, referring STN instead to the U.S. Department of Justice’s Office of Public Affairs, which also had not responded at this report.

Meanwhile, the phase-one bid deadline for the company and its assets was Feb. 5 with a phase-two bid deadline of March 7. Auctions as required take place during the week of March 10 with the selection of final bids on March 19. Approval application of successful bids takes place during the week of March 31. The earliest closing is April 7.

The application for sale and investment solicitation for the CCAA monitored by court-appointed Deloitte Touche states that Lion leases the Joliet plant as well as its Saint-Jerome, Quebec headquarters—which included manufacturing, R&D, and testing and experience centers—and Mirabel, Quebec battery manufacturing facility. Gervais said Lion continues to assist customers with the maintenance and servicing of their vehicles for school buses and trucks, including warranty, adding that customers can follow the same claims process for warranty repairs.

“We are conducting the necessary follow-ups and aim to provide the highest level of support possible in the circumstances to customers with their fleet,” he added. “Our service team remains in action to support customers.”

Gervais added Lion is also committed to providing clients with as much information as possible to assist them remotely in resolving their issues. “Complex repairs and technology-related breakdowns will be prioritized for on-site support during this period,” he said.

Lion Electric established experience/service centers: Three in California as well as one each in Colorado, Florida, Indiana, Massachusetts, Texas, Vermont and Washington. Only the Sacramento, California, location remained open at this report.

“It is important to emphasize that customer service is maintained for all customers, trucks and buses, regardless of the state or city they are located in,” Gervais said.

What’s Next for Lion and Its Customers?
Lion Electric sent an email to customers in December regarding its financial situation, stating that its management remained in control of the company during the CCAA process with the anticipation the customer’s existing “point person” at Lion would not change.

Despite the subsequent layoffs, Gervais said school transportation departments can work directly with parts suppliers as needed.

Yet many school districts find themselves with little to no customer support because their reps no longer work for the company. Or they have active purchase orders for new electric school buses that won’t be delivered.

Peoria Public Schools in Illinois was awarded a 2023 EPA Clean School Bus Program grant to purchase 15 electric buses and infrastructure. Joshua Collins, director of transportation and fleet services, said Peoria chose Lion because its electric vehicle manufacturing experience.

“At the time, they were building the plant in Joliet, so they were local and looked like they were the people to go with,” he added. “Fast forward a year later, and things didn’t go their way and didn’t work out.”

Collins noted he doesn’t know what’s left of the company. “It left us in limbo because we had made a purchase agreement with them,” he continued. “We’re navigating with our attorneys on what steps we should take and what we need to do. How do we separate ourselves from this? How do we end these service purchase agreements?

“We’ve moved on to another partner we are working with. We have to vacate our purchase agreement with Lion, which we’re still in the process of doing through our attorneys. We don’t want to get stuck with two purchase agreements.”

Collins said he was also concerned about a potential federal pause in funding “and we [hope we] are able to use those and move forward. It’s just been one thing after another, after another.”

Half of the 50-bus fleet operated by Herscher Community Unit School District 2 fleet in Illinois is comprised of Lion Electric buses, said Superintendent Dr. Richard Decman. He added that the school district selected Lion Electric because of manufacturing at now shuttered plant in nearby Joliet.

“Our district was given $9.875 million for the purchase of 25 electric buses and the related charging stations. Lion Electric worked directly with us to write the grant,
so that we did not have to worry about spending an inordinate amount of time on grant writing for something that may or may not happen,” he explained.

Decman said an additional benefit included projected long-term savings of operating electric buses compared to internal combustion engine buses. He said an analysis completed after one semester of use showed $125,000 to $150,000 in total savings per year.

Long-term health benefits to the school community are derived from less emissions from electric buses compared to diesel buses and the ability to get air-conditioned buses, he added.

“Weight is evenly distributed, the bus is quiet, and the bus is slightly larger, so the aisles and seats are more comfortable for the movement of passengers,” Decman added. “We wanted to get a head start on working out the kinks of implementing this type of technology as we believe it is likely a matter of time before more schools see the benefits.”

Decman indicated to Canadian media that while he’s been pleased with bus performance to date, it’s taking longer to secure replacement parts for minor maintenance issues, like replacing a stop arm motor, a door open/close motor, a heat sensor, and a strobe light fuse.

“Most if not all of our new contacts are no longer in the state,” said Decman. “Since we have our own mechanics, as long as we can get parts and have their experts show our guys what is needed, via Zoom is fine, location is not really an issue for most repairs.

“We just want to make sure we can get the parts in a timely fashion as well,” he continued. “Obviously, if a bus gets in an accident or needs major repairs, that will be a different story. Hopefully this all gets resolved one way or another.”

Decman added that his biggest concern is whether the warranties on the district’s buses will carry over if the company is sold.

Dr. Andrew Brooks, superintendent of schools for the Wethersfield District #230 in Kewanee, Illinois, said the purchase last fall of three Lion Electric buses was funded by EPA. Upon finding out the company was in financial trouble, he reached out to his service contact, who relayed that he had been laid off.

If Lion Electric cannot find a buyer, Brooks said the district will seek another supplier. “We are looking at Blue Bird, IC, and Thomas [Built Buses] models of EV buses,” he added.

Brooks said there is no delay in student transportation operations as Wethersfield awaits Lion Electric’s status “as they can still provide them on our timetable, if they power back up.”

Yarmouth School Department in Maine bought two Lion Electric buses in 2023 with federal grant money, said Superintendent Dr. Andrew Dolloff. The community’s Climate Action Committee along with students and school staff “placed a priority on awareness and action pertaining to climate change and use of renewable energy,” he said. “A quality EV bus program aligns with the town’s goal of being carbon neutral in the coming decade.”

Dolloff told Canadian media the Lion Electric buses often display messages indicating heating, electrical or battery problems, necessitating they be pulled out of service.

It has taken weeks to months to get someone from Lion Electric to visit the area and fix the issue, he said. “We have asked for the buses to be replaced, not likely or for compensation to be made so we can purchase others, also not likely, and have communicated with Maine’s Department of Education and the Governor’s Office, who have reached out to the EPA to see if there might be some relief provided through their grant programs,” Dolloff said.

Customers do have other options. “We are able to assist districts with maintenance on Lion EV buses. Maintenance on electric school buses is part of our offering to all districts, regardless, if you contract with First Student for home to school services or not,” noted
Danielle Becker, senior marketing manager for First Student, of the fee-based service. “We can provide maintenance for all vehicles including diesel/ gasoline yellow and white fleet. We are able to provide comprehensive preventative and corrective maintenance. Districts can contract directly with First Services or use the buying cooperative Sourcewell to contract with First Services for maintenance services.”

Much of the customer service Lion provided was via a proprietary remote diagnostics tool. Frank Naelitz, the director of electric vehicle maintenance for First Student, said any school bus customer should be wary about losing turnkey service when the provider ceases operation. Because the school bus contractor owns and operates 350 Lions—all of which operate in Quebec—Naelitz helped to create a technical assistance center and First Student’s own remote diagnostics tool, available at all 600 of its locations.

“That same infrastructure is able to provide some of that technical support to groups outside of First Student, if there is that need,” he explained. “That program does anything from finding service information to remoting into a diagnostics computer at the point of repair and helping them trouble shoot while connected to the vehicle, reviewing log files from various components. We could probably source parts at some point.”

Todd Hawkins, First Student’s senior vice president of maintenance, explained that all company technicians use tablets for work orders. “A tech can log in to the help desk and Frank can take over their iPad, take pictures of what they’re working on, draw on it, write in specs. He can walk them through a repair. We may end up dispensing these programs where we could talk to [techs] directly,” he added, noting the company won’t work on high-voltage issues without the customer first taking basic arc flash and other relevant training.

Editor’s Note: As reprinted in the March 2025 issue of School Transportation News.

---

Related: (STN Podcast E251) Making Safety Safer: Seatbelts, Technology, Training & Electric School Buses
Related: Next-gen Jouley: The Future of Electric School Buses
Related: Electric Vehicle Onboarding: The Keys to Success for Fleets
Related: Updated: Rising Insurance? Additional Balancing Act Needed Amid Electric School Bus Push

The post On the Block appeared first on School Transportation News.

As Canada braces for the impact of steep 25% tariffs on vehicles it exports to the United States, a missed opportunity is coming back into focus. Chinese automaker BYD reportedly expressed interest in investing in Canadian manufacturing but backed off after encountering significant pushback. With Trump’s new tariffs set to take effect on April 2, some are now wondering if Canada might need BYD more than it realized.

More: Canada Freezes Musk’s $43M Tesla EV Rebate Claim After Rapid-Fire Sales, Bans Future Subsidies

China’s ambassador to Canada, Wang Di, said moves made by the Canadian government have “seriously dampened” the confidence of Chinese companies to invest locally. For example, three Chinese mineral firms have been ordered to divest their assets, TikTok’s Canadian branch has been closed, and AI firm DeepSeek has been banned, all in the name of national security.

Why Canada Shut the Door on BYD

This hardline approach toward Chinese firms—including BYD—has been framed as a move to protect domestic industry, ensure national security, and align with US concerns. American officials, including former President Biden, had warned that Chinese automakers might try to use Canada as a backdoor into the US market. But with President Trump reimposing tariffs, the rationale for walling off Chinese investment may be shifting.

A recent report by The Logic suggests that if US-Canada trade alignment is no longer a priority, Canada might do well to reconsider its position. Letting BYD invest could bring clear benefits, especially with Canadian auto jobs now potentially at risk.

“BYD had carefully thought about coming to Canada to make investment. But they met huge difficulties, restrictions and obstruction, and they had to give up the idea of investing in Canada. And I heard that they have moved to other countries, and they have been very successful there,” Wang Di told The Globe and Mail.

Read: Chinese-Owned EV Brands Gain Momentum In Europe, Collectively Outsell Tesla

“If BYD was successful in investing in Canada, then I think the result would be the Canadian consumers would have been able to enjoy the EVs with the latest technology, with very good quality and with a cheaper price. Isn’t that a good thing?,” he added.

Too Little, Too Late?

If Trump’s tariffs force car manufacturers to shift more of their production to the United States, countless jobs could be lost throughout Canada’s auto manufacturing sector. Now, it’s Canada that may need BYD more than the Chinese automaker needs it.

However, that ship might have already sailed. According to BYD spokesperson Frank Girardot, BYD does not have any plans for manufacturing in Canada and will simply continue to service the company’s buses that some transit operators in the country use.

New Poll: American Voters Support Federal Investments in Electric Vehicles Broad, Bipartisan Support for EV Investments and Incentives that Lower Costs, Expand Access, and Help the U.S. Beat China in the Race for Auto Manufacturing WASHINGTON, D.C. – A new bipartisan national poll conducted by Meeting Street Insights and Hart Research finds broad public support …

The post Support for Electric Vehicles appeared first on Alternative Energy HQ.

Earlier this month, Tesla sparked outrage among Canadian auto dealers after selling an astonishing 8,653 cars in just three days across four stores, which equates to roughly two cars per minute for three straight days, including the hours the stores were closed. The company then filed for C$43.1 million (US$30M) in rebates.

That all unfolded right before Canada ran out of cash in its EV rebate fund. The combination of factors led officials to wonder if Tesla gamed the system somehow. Now, the Canadian government is freezing payments to the  EV maker led by US presidential adviser Elon Musk, while it sorts everything out.

More: Tesla Accused Of Gaming Canada’s EV Rebate Program After 4 Stores Sold 2 Cars Per Minute Wiping Out $43M In Grants

Everyone suspected that, as funds in the EV rebate program dwindled, sales would rise a bit. That would be great for Tesla in Canada, especially since it was struggling to move cars early this year. But selling 8,653 cars in just three days? That’s not just a boost, it’s a bit of a red flag. Something felt off.

The Freeze and a Tariff Twist

On Tuesday, Canada’s Transport Minister Chrystia Freeland made the call to freeze C$43 million (equal to $30M at current exchange rates) worth of payments. “As soon as I became Transport Minister, I asked the department to stop all payments for Tesla vehicles in order to fully examine each claim individually and determine whether all are eligible and valid,” Freeland said in a statement to the Toronto Star. “No payments will be made until we are confident that the claims are valid.”

But Freeland didn’t stop there.

“I also directed my department to change the eligibility criteria for future iZEV programs to ensure that Tesla vehicles will not be eligible for incentives so long as the illegitimate and illegal US tariffs are imposed against Canada” she added.

Freeland has also directed changes to eligibility criteria for future rebate programs, potentially making Tesla vehicles ineligible for subsidies until issues regarding U.S. tariffs are resolved.

By linking the issue to US tariffs, the Canadian government is addressing a situation that is largely beyond Tesla’s control, as tariff decisions are made at the national level. While the embattled CEO may have a close relationship with the American President, he doesn’t have the power to end the tariffs on his own. Currently, Trump is planning additional tariffs for April 2. However, he’s already backtracked and flip-flopped on his plans multiple times. Perhaps he’ll reconsider his strategy if Musk begins to feel the pressure.

A Sting for Local Dealers

Back in Canada, Freeland also mentioned that the government would reimburse more than 200 independently owned auto dealers who were left out of about CA$10 million after fronting rebates to customers without being able to file for reimbursement.

More: While Canada Fights Back Against Trump’s Auto Tariffs, Mexico Chooses Diplomacy Over Confrontation

Huw Williams, spokesman for the Canadian Automobile Dealers Association (CADA), welcomed the news.

“CADA has been shocked at the revelations that Tesla was somehow allowed to … take $43 million in rebates while locally owned dealers have been left holding the bag on funds advanced to customers on behalf of the federal government,” he told the Toronto Star. “While the news that Tesla payments are being frozen pending investigation is positive news, this should have happened months ago,” he added.

It’s worth mentioning that Elon Musk, who holds a Canadian passport and has sparked controversy by posting (and later deleting) on X that “Canada is not a real country,” has significantly benefited from Canadian EV rebates. Since 2019, Tesla has claimed $713 million in rebates, making it the largest recipient of these incentives by far.

Tesla was accused by the Canadian Automobile Dealers Association (CADA) of cheating legitimate car dealers and buyers in Canada out of iZEV subsidies earlier this month. Critics have now grown even more suspicious after footage emerged of hundreds of new Tesla EVs left in disused parking lots.

Canadian media discovered huge fleets of brand new Model 3s and Model Ys languishing in the lot of an old strip mall in Toronto, conveniently located across the street from a Tesla dealership. Hundreds of miles away in Laval, Quebec, reporters founds scores more Teslas jammed into parking bays in another lot.

Related: Tesla Accused Of Gaming Canada’s EV Rebate Program After 4 Stores Sold 2 Cars Per Minute Wiping Out $43M In Grants

A staggering 8,600 cars were registered in just three days at four Tesla retail outlets in Canada, which breaks down as one car every minute, 24 hours a day for three straight days, even when the stores were closed. That kind of activity is highly unusual, but what really raised eyebrows was the timing of the sales flurry.

The sales came during a period when demand for Teslas in Canada had tanked, in part due to CEO Elon Musk’s association with President Trump, who has threatened to impose significant import tariffs and repeatedly suggested that Canada could become the USA’s 51st state. But the sales also occurred right before the country paused its iZEV electric vehicle subsidy program, leading some to suggests Tesla had gamed the system.

Tesla filed for C$43.1 million (US$30M) in rebates, which represented more than half of the remaining C$71.8 million (US$50M) allocated for EV rebates, and has left many Canadian car dealers out of pocket. They had fronted the discount themselves for each car they’d sold on the understanding that they’d be able to recoup the money from the Canadian government, but that might not now happen.

One dealer CTV News spoke to said he was C$400k ($279k) down because Tesla’s sales rush meant he hadn’t had chance to claim before the program was shut down.

More: Over 80 Tesla Cars Vandalized At Canadian Dealership In Possibly The Largest Attack Yet

Tesla better hope the vandals behind recent attacks on its cars and showrooms don’t watch the news, because hundreds of Model 3s and Model Ys parked up together sounds like a dream come true for protestors. We’ve asked Tesla—who famously disbanded its press team in the US—about the lots full of cars, but so far, we haven’t received a response.

Lead image Google Maps

Tesla’s ongoing battle with vandalism and protests seems to be showing no signs of letting up, and if anything, it’s only getting worse. In what’s possibly one of the largest attacks we’ve heard of so far, at least in terms of the sheer number of vehicles affected, over 80 Tesla cars were damaged at a dealership in Hamilton, Ontario, Canada, on Wednesday.

Police responded to the scene after receiving reports of vandalism at the Tesla dealership. Upon arrival, officers discovered that over 80 Tesla vehicles parked outdoors had been damaged, including deep scratches, punctured tires, and possibly other forms of destruction.

More: Tesla Under Siege As Multiple EVs Set On Fire And Vandalized Across The US In One Day

“Police are currently reviewing CCTV footage and are asking the public for assistance in solving this crime,” said Hamilton Police in a statement.

This attack is just the latest in a series of incidents that have put Tesla in the crosshairs. Just days earlier, a suspicious fire at a parking lot in London, Ontario, left a 2025 Tesla Model S in flames, according to CBC. Thankfully, no injuries were reported, but police estimate the damage at around $140,000.

Tesla Booted From The Vancouver Auto Show

In another blow to the brand in Canada, organizers of the Vancouver Auto Show booted Tesla from the lineup earlier this week, citing security concerns. With the event kicking off today, the organizers feared that Tesla’s presence would attract angry protests and further vandalism. VIAS said it gave the company multiple chances to withdraw voluntarily, but Tesla refused. “The Vancouver Auto Show’s primary concern is the safety of attendees, exhibitors, and staff,” the show’s organizers said in a statement.

A Global Problem

These incidents are hardly isolated, with attacks against Tesla vehicles and dealerships popping up worldwide—though the US has certainly seen a disproportionate share. In fact, there’s been a troubling surge in vandalism targeting both private Tesla cars and the company’s locations, including dealerships and Supercharger stations, over the past few weeks.

More: Tesla Accused Of Gaming Canada’s EV Rebate Program After 4 Stores Sold 2 Cars Per Minute Wiping Out $43M In Grants

The intensity of the attacks seems to have spiked since former U.S. President Donald Trump appointed Tesla CEO Elon Musk to lead the newly created Department of Government Efficiency (DOGE). The department’s aggressive cuts to government spending, which led to widespread layoffs, have likely stoked rising tensions. Musk’s often controversial tweets on his X platform, which continue to stir the pot, certainly haven’t helped calm the situation either.

In Canada, however, the situation is more complex. The Trump administration’s increasingly combative rhetoric, including threats of tariffs and calls for annexation, has strained relations between the neighboring countries. Elon Musk, though not an elected official, has become a lightning rod for much of the criticism due to his prominent role in the administration. And with Tesla being his most visible and accessible venture, much of that frustration is being channeled directly toward the company and its products.

The electrified vehicle market is clearly on an upward trajectory, with sales reaching new heights in the first two months of 2025. While EVs and PHEVs still account for a smaller portion of total car sales in key global markets, the growth is undeniable.

According to data from RhoMotion, the first two months of 2025 saw a combined total of 2.4 million EVs and PHEVs sold worldwide, marking a 30% increase from the same period last year. Not surprisingly, China is leading this charge, with electrified vehicle sales there climbing by an impressive 35%, reaching 1.4 million units.

Read: Tesla Sales Crumble 45% In Europe, While EV Market Explodes 37%

Sticking with China, the data shows that sales jumped 76% in February compared to the same month last year. However, comparing February 2025 to February 2024 isn’t ideal, as Chinese New Year fell in the middle of February last year, but was at the start of the month this year. Nonetheless, sales from January and February show BEV sales have climbed 46% while PHEV sales have risen 22%.

Significant growth has also been reported across the US, Canada, and Mexico. Sales here are up 20% year-to-date. In Mexico, sales have more than doubled thanks to the arrival of new Chinese EVs, while in the US, EV and PHEV sales are up 28%. One possible explanation for the US is that shoppers are rushing to buy an EV before the $7,500 federal EV tax credit potentially gets scrapped.

European Growth

Europe, too, is seeing solid numbers, with EV sales up by 29% compared to last year. However, PHEV growth in the region has been more modest, rising just 2%. Notably, PHEV sales in France took a sharp dive (down 48%) after the government introduced a weight tax on plug-in hybrids.

“It’s been a solid start to the year for EV sales globally with a 50% bump in February compared to the previous year,” RhoMotion data manager Charles Lester said. “Much of the growth continues to come from China which are seeing a pure electric renaissance this year compared to the hybrid love affair of 2024. Despite high tariffs, their domestic brand, BYD, shows no signs of slowing down their home and international expansion.”

Four Tesla stores in Canada each sold an average of 30 cars per hour, amounting to 120 cars per hour across all four locations—essentially one car every minute, 24 hours a day…for three straight days. And yes, this includes hours when the stores were closed.

This extraordinary surge in sales conveniently coincided with Canada’s impending end of its electric vehicle subsidies, and it led to Tesla filing for C$43.1 million (US$30M) in rebates. This sum represents more than half of the remaining C$71.8 million (US$50M) allocated for EV rebates. Naturally, these details have left officials scratching their heads, wondering just how Tesla managed to pull it off.

Read: Trump Tariffs Go Into Effect, Canada Responds With 25% Retaliatory Tariff

Keep in mind that Tesla is struggling when it comes to sales in Canada right now. According to the National Post, deliveries nosedived some 70 percent between December 2024 and January 2025. When the Canadian government announced that it would soon end electric vehicle subsidies, it was expected that Tesla would see a small bump up in sales. However, a giant spike like this is a different ballgame altogether.

In total, it reportedly sold 8,653 cars in three days across four stores in Canada. The sales figures come from Transport Canada, which is the body that accounts for the rebates. According to the The Star, an official from that governmental body openly said “Tesla didn’t sell those cars that weekend.”

The Impact on the Rebate System

While these sales are a win for Elon Musk’s company, they left rival brands without access to the same EV credits. Tesla’s $43.1 million in rebates consumed more than half of the remaining funds for EV subsidies. By the time other dealers attempted to claim their rebates, the money had run out. And there were plenty of them.

According to the Canadian Automobile Dealers Association (CADA), 226 dealerships submitted rebate claims for 2,295 electric vehicles but still haven’t been reimbursed, leaving them collectively out by C$10 million. Additionally, in regions like Quebec, many dealerships are closed on weekends, effectively locking them out of this “sales rush”.

Dealers Left Holding the Bag

Terry Budd, who owns eight dealerships in Canada, was understandably shocked by the news. He told The Star that he hadn’t received any formal notice about the iZEV program’s end, only a warning from CADA that the funds were running low. Budd estimates he’s out $150,000 for rebates he submitted, with another $25,000 for those that were never processed.

“The deal’s done, and we’re shy that money,” Budd said. “Nobody can tell us whether we’re going to be paid or not.” When told that a single Tesla store in Quebec had reportedly sold 4,000 cars over the weekend, Budd couldn’t believe it. “There’s no way they delivered or sold that many cars in a weekend,” he said. “They cleared everyone else out.”

More: Tesla Sales Fall Off A Cliff Globally, Including Germany, Australia, And China

Huw Williams, a spokesperson for CADA, added, “These dealers, in good faith, gave customers the money for a program that is always refunded. They shouldn’t be left making a payment on behalf of the Government of Canada.”

Unlike most other dealerships, Tesla’s Canadian stores are company-owned and directly controlled. This gives Tesla an advantage in navigating rebate claims and the sales process, unlike independent dealerships that run their own operations.

Canadian officials, however, are questioning how Tesla managed to achieve such a feat.

“Tesla had a run on the bank,” said Williams. “Somehow, Tesla gamed the system. What we can’t figure out is how this could have happened without setting off alarm bells.” He even went on to say that it defies logic that Tesla could sell that many cars and that “the registration gaming of this may be inappropriate.”

A Gray Area?

Notably, Transport Canada has stated that there’s no rule against Tesla submitting rebate paperwork in bulk after sold cars are delivered. This could be what happened, but there’s still a lot of uncertainty about the exact details. Maybe more will unfold in the coming weeks—perhaps a few more alarm bells will go off.