Lion Electric In Merger Talks With Northern Genesis
Crystal Tse October 30, 2020
The Lion Electric Co., a maker of electric vehicles such as yellow school buses, is in talks to go public through a merger with blank-check firm Northern Genesis Acquisition Corp., according to people with knowledge of the matter.
Northern Genesis has begun discussions with prospective investors about raising a targeted $500 million in new equity to support a transaction, said some of the people, who requested anonymity because the talks are private.
The merged entity is set to be valued at $2 billion or more, one of the people said. As with all deals that aren’t yet finalized, it’s possible terms could change and talks could collapse.
A representative for Lion Electric declined to comment. A representative for Northern Genesis didn’t immediately respond to a request for comment.
The Quebec-based company said in September that it’ll deliver 10 battery electric trucks to Amazon.com Inc., a move that will help the e-commerce giant to reduce its carbon emissions.
Power Sustainable Capital, a subsidiary of Power Corp. of Canada, is Lion’s largest shareholder.
Battery-makers and other companies in the electric vehicle space have flocked toward SPACs for capital. At least five have agreed to go public by merging with a special purpose acquisition company, including Nikola corp and Fisker Inc.
Northern Genesis raised $300 million in an initial public offering in August.
More info On Northern Genesis can be found on my previous video here:
Are the Buses Real or ChodoChopped?
Here this video blew my mind, check out the unloading mechanics
even more videos, not photojobs
Any Recent Orders Or News?
MONTREAL, April 18, 2019 (GLOBE NEWSWIRE) — CN (TSX: CNR) (NYSE: CNI) announced today that it has signed a Memorandum of Understanding (MOU) with The Lion Electric Co. for the conception, design and manufacturing of eight tandem axle, Class 8, zero-emission, electric trucks as part of its larger sustainable strategy to reduce emissions through innovation.
The trucks will be deployed in cities across the CN network such as Vancouver, as well as the Greater Toronto, Montreal, and Hamilton areas. They will be tested for different tasks from urban delivery, container shuttle service, to port operations, and cross-town service. The trucks are custom-built and engineered in Quebec to withstand North American weather and road conditions. The trucks will also produce no noise pollution and each truck will remove 100 tons of GHG from the road annually.
“This project is an example of CN’s commitment to sustainable business practices,” said Mark Lerner, Vice-President of Marketing and Business Development at CN. “By using these zero-emission trucks in different settings, we want to identify where these trucks can make the most impact on how we serve our customers and reduce our emissions. Over the last 25 years, CN has already reduced greenhouse gas emissions from its locomotives by 40% and we are constantly looking for innovative ways to continue down that path.”
“We are very pleased to support CN in its commitment to sustainable mobility,” added Partick Gervais, VP Marketing and Communications at The Lion Electric Co. “By purchasing zero-emission trucks from Lion, CN is also promoting local innovation and jobs. Lion Electric will have 200 employees by the end of 2019 and more than 1,000 within the next 10 years thanks to agreements like this one.”
Delivery of the trucks is expected in the summer of 2020. The terms of the MOU were not disclosed.
I need to figure out if this got done or not, if so this is huge!
I like how they are staying current with engagement and news
How does that stack up ?
All of Lion’s vehicles are purpose-built for electricpropulsionfrom the ground up, and are manufactured at Lion’sCanadianfacility, which has a current capacity to produce 2,500 electric trucks per year.Over the last decade, Lion has established itself as a leader in the all-electric school bus industry, having delivered over 300 all-electric school buses in the U.S. and Canada with over 6 million miles driven since 2016
They Have 2 Offices :
BMW batteries for their buses
Truckers were the ones who noticed that Lion had repurposed a Class 7 truck chassis, a vehicle’s base frame, for its school buses.
“We had a lot of phone calls from truck operators saying, ‘My word, if you’re doing a class 7 electric chassis, you can do an (electric) truck,’” Bedard said.
From that base, Lion began building prototypes and bringing in members of the trucking industry to run focus groups. The company wanted to know where to place the charging ports: should they be near the front of the truck or the back? Did operators want Level 2 charging, which is done through a 240V plug or did they prefer Level 3 fast charging with a 480V plug? And, most importantly, where exactly did they want the steering wheel?
The latter seems like an obvious question in North America — it’s the left side. But it wasn’t so obvious for Lion’s engineers, since they were tinkering with the idea of placing it squarely in the middle of the cabin. The trucks could then be sold overseas in countries where the driver sits on the right side of the cabin without modification.
The idea was immediately shot down by North American truckers, Bedard said, and Lion pivoted to a more conventional design.
Well, conventional enough. Instead of placing the motor at the front end of the truck, they hid it underneath and eliminated the need for the truck to have a “nose,” as Bedard calls it in standard designs.
Like the school buses, it took Lion five years to master its truck design and begin manufacturing. The company now offers a range of vehicles, from refuse trucks for garbage pick-up to refrigerated trucks for meat and produce deliveries.
Bedard won’t move completely away from buses or fighting for government contracts, though. Lion’s latest electric vehicle, which is scheduled to hit the markets in 2021, is an ambulance.
Lion to get good batteries from a bunch of different suppliers, not just the handful of the ones available, is totally different than it was 10 years ago.”
If you go back 10 years, you were looking at large delivery vans with at best 180 km of total range and now you’re probably doubling that
Lion is looking to aggressively expand and open a factory in the U.S. with a capacity of 20,000 units, good for a 700 per cent uptick in production. Bedard wants it fully operational in two years.
Bedard said Lion was in discussions with the mega-retailer, which wanted trucks with a range of 800 km, double what his can do.
Instead of putting a new truck into production, or making a promise about his vehicles that he couldn’t keep, he turned Walmart down.
“His way of competing was through innovation.”