Swedish Connect Bus cancels order for 47 Ebusco e-buses amid delivery delays

Swedish carrier Connect Bus has decided to switch electric bus supplier due to significant delivery delays from Ebusco, is reported on Swedish trade media Bussmagasinet.se. Connect Bus will also be seeking financial compensation from Ebusco.

Originally, Connect Bus had planned to introduce 47 new electric buses (model Ebusco 3.0) in Kronoberg by December 2023, but repeated setbacks have forced the company to seek a new partner. The e-buses had been ordered in 2022. The new supplier, one of the world’s largest bus manufacturers (although its name has not been mentioned), is expected to deliver fully operational electric buses by August and September 2025.

In early September 2024, Ebusco‘s Supervisory Board has appointed Christian Schreyer as new CEO in the framework of the turnaround plan put in place by the company’s Executive Team. Founder Peter Bijvelds and Michiel Peters stepped down as Co-CEO’s on 2 September.

Ebusco towards bankruptcy?

Speculations about Ebusco’s insolvency are gaining space. The company’s half 2024 financial results show EBITDA loss of €60.7 million (increased 40% compared to 43 in 2023) and revenue at €38 million (-8.8%). Just 98 buses were delivered, vs a order book of as many as 1,662 buses. “Scaling up with contract manufacturers has been hampered by start-up inefficiencies”, said the company, that is pivoting to a new strategy based on assembly of 3.0 model in China being made by a external partner, as stated during the presentation of 2023 results in March this year.

Ebusco shares have today a value of 0.94 €, and witnessed a -87% decrease in the last 12 months. The loss compared to the time when the company went public (October 2021) is -96%, as Ebusco’s shares value at that time was around 23 euros.

Ebusco asked penalties from Connect Bus

The original order from Ebusco included 29 standard 12-meter buses and 18 articulated 18-meter buses, but delays and uncertainty around the company’s ability to meet the delivery deadlines led Connect Bus to cancel the contract, Bussmagasinet.se reports.

CEO Jonas Kempe confirmed that interim solutions will be in place to maintain public transportation services, with older buses being replaced by second-hand models.

Kempe also mentioned that Connect Bus would be seeking financial compensation from Ebusco. “We have an ongoing dialogue with the company, but clearly the amounts involved are quite large – Kempe is quoted as saying -. We have incurred significant direct additional costs to keep the traffic running. We have been forced to use old gas buses in Växjö, which has meant large costs for repairs and maintenance, for instance”.