Autobus Thomas launches a cry from the heart to denounce the quasi-monopoly granted by the government to Lion Electric within the framework of the assistance program to promote the purchase of electric buses. If nothing changes, by the end of the year, the Drummondville company plans to declare bankruptcy.
“The government is in the process of shutting down a Quebec company that is more than 40 years old,” lamented Éric Couturier, vice-president of sales. He asks that all players be able to participate in the green shift on equal terms.
Since July 2021, when Quebec’s $250.7 million program came into effect to subsidize the purchase of electric buses, the order book at Autobus Thomas has been at zero.
From around fifty workers, the company has had to reduce the number of its employees in recent months, and it now has around thirty. The reductions will continue in the coming weeks, up to ten employees.
Local content
It must be said that about 80% of the company’s $50 million in revenue came from the sale of new school buses. The other 20% comes from the maintenance service for the vehicles sold.
Remember that, since October 31, it is no longer possible to register a bus in Québec that runs on diesel, propane or gasoline.
“We did not sell a school bus [neuf] since summer […] Before, we sold 300 a year,” said the Log Véronique Dubé, vice-president of operations at Autobus Thomas, specifying that she had in her portfolio an electric model with a range of 225 kilometers, the Jouley.
“There is content here. There is a manufacturer from Grandy who makes all the components for the windows in our vehicle,” she added.
But since it is manufactured in North Carolina by a subsidiary of the German giant Daimler, this product does not meet the criteria of the subsidy program, which requires that the vehicle be manufactured in Canada. A situation that favors Electric Lion, according to various players in the field.
“We were never given the chance to sell our electric vehicle,” said Couturier.
Autobus Thomas says he even asked Daimler if there was a possibility of transferring production or certain stages to Quebec.
“We are trying to put pressure on a Quebec company to make a European giant move. It’s disproportionate,” added M.me Dube.
In its first year, the government program grant was $150,000 for the purchase of a bus. Since April 1, this amount has increased to $125,000 and will be $100,000 next year.
Due to an agreement with Quebec, approximately 200 traditional school vehicles from Autobus Girardin (Blue Bird) can also benefit from this financial assistance.
Handcuffed carriers
In recent weeks, several carriers, preferring to keep their names silent to avoid reprisals, have told the Log that they felt handcuffed by this aid program. They also doubt that Quebec can achieve its goal of having 65% of electric school buses on the roads in 2030.
Some have said they don’t have the right facilities or the guts to convert their entire fleet to electric in such a short period of time, and argue that the financial aid on the table is insufficient to support all the work necessary for the green shift.
Several have also mentioned that they stocked up on traditional buses before the changes that were made in 2021.
“By proposing only one firm, the prices will not drop. You have to forget that. […] I want to have [la possibilité] to choose,” said the CEO of a Quebec carrier. “The government must also provide amounts for additional costs related to the needs for the facilities,” he added.
“We were taken away from our operator freedom. Even if they tell me that I still have a choice, it’s not true”, pointed out another leader.
Autobus Thomas has been pushing for more than a year for changes to the program. In March 2021, Quebec and Ottawa announced a $100 million loan to Lion Electric.
Ottawa has also implemented a subsidy program to help carriers purchase electric buses.
Thomas Bus
- Drummondville
- Thirty workers
- 4500 bus for after-sales service
- Drop of 80% in revenue since July, i.e. approximately $40 million