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* ABC 7…
Lion Electric, which manufactures electric buses, will suspend its operations at its Channahon facility , the company announced in a press release Tuesday.
The company announced the suspension of operations at the plant as well as temporary layoffs of about 400 workers across the company, which is based in Canada. The layoffs leave Lion Electric with about 300 workers.
* The company has been struggling for months. Here’s a Tribune story from July…
In an interview, [Lion Electric executives] attribute the slowdown to the complex and still-incomplete rollout of government subsidy programs in the United States and Canada. […]
Lion Electric is dependent on government subsidies but doesn’t benefit directly.
Rather, the zero-emission transit fund writes its checks to local schools, but not until they install charging stations, take delivery of the buses, pay for them and begin hauling students.
This can take two years or more after regulators approve a school board’s application. Such time lags also occur in the United States, where the EPA follows similar procedures.
The vehicles cost the school districts about $350,000 each, which is way more than the $150,000 for a petroleum-powered bus. Hence, the federal subsidies.
* The company has received no state subsidies…
Lion’s Joliet plant is one of several EV projects announced by Pritzker, along with a Gotion battery plant in Manteno, a Stellantis battery and electric truck factory in Belvidere, and an expansion of Rivian’s assembly plant in Normal.
“lllinois has made tremendous strides turning the state into a manufacturing hub for electric vehicles, and our partnership with Lion Electric continues to be a vital piece of that strategy,” the governor’s office said in a statement. “While this measure is temporary, we remain hopeful that Lion will continue to serve as a pillar of the Joliet community, and we are confident their 900,000-square-foot facility will continue to be a standard bearer as the largest all-electric U.S. plant dedicated to medium and heavy-duty commercial vehicle production.”
The state offered incentives worth up to nearly $50 million in payroll-tax credits to Lion but hasn’t yet paid out any money. The deal requires Lion to create 608 jobs, and the earliest the incentives would begin to be paid out is 2026. The agreement called for 1,228 full-time jobs by 2028.
The company is currently scrambling to raise private and Canadian government funding.
Discuss.
posted by Rich Miller
Tuesday, Dec 3, 24 @ 11:15 am
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=This can take two years or more after regulators approve a school board’s application.=
Not sure if they think that is how long it takes in Illinois because it does not. One of our neighbors applied for the grant and the plan was approved and the process started in a span of 4 months.
Comment by JS Mill Tuesday, Dec 3, 24 @ 11:23 am
The cost is one thing. So is the push back on anything battery powered in the transportation sector right now.
It’s a shame, and I don’t know if these buses are any good, but a school bus is the perfect thing to run as an EV. They have set routes, they return to the same parking area every night and there is often in house maintenance for them.
A school district would still need a mix of liquid motor fuel and EV busses for longer sports trips and the like. But an EV bus makes a ton of sense.
I’m guessing here, more than a few districts would see pushback over the price and buying anything EV as caving to a woke agenda.
Comment by Cool Papa Bell Tuesday, Dec 3, 24 @ 11:43 am
I worry about all these EV programs under the new admin coming in. Unless there is a benefit to Musk they will all be in the crosshairs.
Rivian at least has Volkswagen and Amazon $ to backstop things a bit in Normal but the future of the Stellantis stuff in Belvidere feels perilous.
Comment by hisgirlfriday Tuesday, Dec 3, 24 @ 11:45 am
==Lion Electric is dependent on government subsidies but doesn’t benefit directly.==
I am not being snarky at all here, genuinely curious: How does that work?
Comment by Alton Sinkhole Tuesday, Dec 3, 24 @ 11:48 am
- I am not being snarky at all here, genuinely curious: How does that work? -
It’s literally the next sentence:
Rather, the zero-emission transit fund writes its checks to local schools, but not until they install charging stations, take delivery of the buses, pay for them and begin hauling students.
Comment by Excitable Boy Tuesday, Dec 3, 24 @ 12:11 pm
===It’s literally the next sentence===
lol
People, pay attention.
Comment by Rich Miller Tuesday, Dec 3, 24 @ 12:36 pm
Jeanne Ives is grinning ear to ear at the thought of children continuing to inhale school bus exhaust.
Comment by Decatur Deliberations Tuesday, Dec 3, 24 @ 12:50 pm
Ev school buses are great as well because they don’t blow noxious toxic diesel exhaust around the kids and school grounds, idling. There’s plenty of studies showing that bus exhaust is a contributing factor to all kind of respiratory problems.
Comment by Give Us Barabbas Tuesday, Dec 3, 24 @ 1:03 pm
== Ev school buses are great as well because they don’t blow noxious toxic diesel exhaust around the kids and school grounds, idling. There’s plenty of studies showing that bus exhaust is a contributing factor to all kind of respiratory problems. ===
There’s also plenty of studies showing that car particulates and exhaust factors into respiratory problems for kids. Electric buses alone won’t solve that. The quickest way to reduce that is to make it easier for kids to bike and walk to school - currently across the state we have long lines of parents idling in front of schools, not to mention the skyrocketing pedestrian deaths. THATs the real problem. Lack of e-school buses is minor compared with the larger problem.
In Paris they have pedestrianized the streets in front of schools. THAT kind of policy would go a much longer way than just subsidizing battery-powered e-buses.
Comment by Incandenza Tuesday, Dec 3, 24 @ 3:17 pm
Electric school buses also have much much lower maintenance costs. They are the perfect use case.
Comment by New Day Tuesday, Dec 3, 24 @ 4:04 pm
Lower maintenance costs?? Uh, price a replacement battery for an EV. And they still need brakes, tires, and other maintenance and repairs.
Comment by thisjustinagain Tuesday, Dec 3, 24 @ 4:55 pm
===Uh, price a replacement battery===
The batteries last 8-12 years. I doubt many ICE buses even last that long.
Comment by Rich Miller Tuesday, Dec 3, 24 @ 5:23 pm