Connect Bus, a major player in public transport in Sweden, has decided to switch supplier for its electric bus fleet.
This decision came after significant delays in delivery by Ebusco, a Dutch company specializing in electric buses. According to the Swedish trade journal Bussmagasinet.se Connect Bus will not only look for a new supplier, but the company will also demand financial compensation from Ebusco for the delays and additional costs.
Connect Bus originally planned to introduce as many as 2023 new electric buses of the Ebusco 47 model in the Kronoberg region by December 3.0. The buses, which were ordered in 2022, were supposed to make a significant contribution to making public transport in the region more sustainable. However, repeated setbacks and delays forced Connect Bus to reconsider the partnership with Ebusco. Ultimately, it was decided to find a new partner who could guarantee the supply of fully operational electric buses, with expected delivery in August and September 2025. The name of the new supplier has not yet been announced, but according to sources it is said to be one of the largest bus manufacturers in the world.
rough waters
Ebusco, which is facing increasing financial problems, is in difficult waters. In early September 2024, Christian Schreyer appointed as the company's new CEO, as part of a major restructuring plan. The company's founders, Peter Bijvelds and Michiel Peters, resigned on September 2 after it became clear that Ebusco was having serious difficulties meeting its delivery obligations.
Ebusco’s financial data for the first half of 2024 shows that the company is struggling with large losses. EBITDA losses increased to €60,7 million, an increase of 40% compared to the previous year. Revenue decreased by 8,8% to €38 million. Despite an order book of 1.662 buses, the company only managed to deliver 98 buses during that period. According to Ebusco, their plans to scale up with contract manufacturers were hampered by inefficiencies in starting up production.
The Swedish company Connect Bus had placed an order for 47 electric buses with the Dutch bus manufacturer Ebusco. This order, which consists of both 12- and 18-meter long buses of the Ebusco 3.0 model, was intended to put the buses into service in the city of Växjö at the end of last year, at the request of Länstrafiken Kronoberg, the regional transport company.
In addition to the operational problems, the company is also in financial difficulties on the stock market. The value of Ebusco shares has fallen by as much as 87% in the past 12 months, with a current value of only 0,94 euros per share. This represents a loss of 96% compared to the IPO in October 2021, when the shares were still trading around 23 euros.
compensation
In response to the cancellation of the contract by Connect Bus, Ebusco has reportedly also demanded financial compensation. Connect Bus's original order included 29 standard 12-metre buses and 18 articulated 18-metre buses. However, continued uncertainty over delivery times and Ebusco's operational problems forced Connect Bus to terminate the contract.
Connect Bus CEO Jonas Kempe confirmed that temporary solutions have been put in place to ensure continuity of public transport. Older buses have now been replaced with second-hand models to meet demand. “We have had to incur significant additional costs to keep the service running,” Kempe said. “We have been forced to use old gas buses in Växjö, which has resulted in significant costs for repairs and maintenance.”
The conflict between Connect Bus and Ebusco is not over yet. According to Kempe, there is an ongoing dialogue between the two companies about the financial compensation that Connect Bus is demanding. “The amounts we are talking about are quite large,” Kempe stated. He emphasized that the direct additional costs that his company has incurred are significant, and that they are entitled to compensation from Ebusco.
