Parking Brake Failure – 2020-2022 Lion C School Buses

SEOCONTENT-START

IMPORTANT SAFETY RECALL August 15th, 2022 «Corporate_name» «Address» «City» «ProvState» «Zip_Code» «Country» Important Safety Recall 22V530 This notice is sent to you in accordance with the requirements of the Motor Vehicle Safety Title 49, United States Code Chapter 301, administered by the National Highway Traffic Safety Administration. This is to inform you that your vehicle may contain a non-compliance that could affect the safety of a person. Description of the vehicle (s) affected by the non-compliance Make Lion Model Lion C Model Year 2020 to 2024 Vehicle Identification Number (VIN) See Appendix A Recall number issued by NHTSA 22V530 Description of the non-compliance During the performance of some tests, it was found that the Lion C parking brake system, if not properly adjusted, could possibly not meet the minimum CMVSS/FMVSS 105 regulation requirement, section S5.2.2.2. The parking brake may fail if it is not properly adjusted. Failure of the parking brake increases the risk of a crash. Corrective measures and precautions Important note : Please do not park or leave your vehicle on a slope to avoid unintentional movement of your vehicle when the parking brake is applied. Please follow this instruction until the non-compliance is resolved with our team of technicians. Lion Electric will contact you as soon as possible to schedule a recall, which will be performed at the company’s expense by one of our technicians. Contact For any question, do not hesitate to contact the service department at 1 833 512-5466. If you have already paid to have your vehicle repaired for this condition, you may be eligible for a reimbursement of the charges you paid for the repair or replacement, as applicable. To learn more about what you need to do to obtain reimbursement, contact Customer Support above. We estimate the time to perform the labor required to correct the defect to be approximately 1 hour. If you no longer own this vehicle, please contact Lion to provide the new owner information. Lion will then contact the new owner. If you are the lessor of this vehicle, please forward a copy of this notice to the lessee within 10 days to comply with federal regulations. After receiving this notice, if you still are not able to have the safety defect remedied without charge and within a reasonable time, you may submit a complaint to the Administrator, National Highway Traffic Safety Administration, 1200 New Jersey Ave., SE., Washington, DC 20590; or call the toll-free Vehicle Safety Hotline at 1–888–327–4236 (TTY: 1–800–424–9153); or go to http://www.safercar.gov, if you believe that Lion Electric has failed or is unable to remedy the defect or noncompliance without charge. Our priority is to always provide you with a product of the highest quality and security levels. We apologize for the inconvenience and would like to thank you for your trust and valuable cooperation. Guy Lecompte Product Assurance Manager Appendix A

**************************************************************************************************************

OMB Control No.: 2127-0004 Part 573 Safety Recall Report 22V-530 The information contained in this report was submitted pursuant to 49 CFR §573 Manufacturer Name : Lion Electric Company Submission Date : JUL 22, 2022 NHTSA Recall No. : 22V-530 Manufacturer Recall No. : NR Manufacturer Information : Manufacturer Name : Lion Electric Company Address : 921, chemin de la Riviere-du-Nord Saint-Jerome, Quebec, Canada 00 J7Y 5G2 Company phone : 1-855-546-6706 Population : Number of potentially involved : 39 Estimated percentage with defect : 90 % Vehicle Information : Vehicle 1 : 2020-2022 Lion LionC Vehicle Type : BUSES, MEDIUM & HEAVY VEHICLES Body Style : OTHER Power Train : HYBRID ELECTRIC Descriptive Information : We have determined the number of impacted vehicles with our database and these are all LionC vehicles produced and sold in the United States Production Dates : JUN 29, 2020 – JUL 22, 2022 VIN Range 1 : Begin : NR End : NR Not sequential Description of Noncompliance : Description of the Noncompliance : Tests were conducted by Transport Canada, and it was found that the Lion C parking brake system, if not properly adjusted, did not meet the minimum requirement of CMVSS/FMVSS 105, section S5.2.2. To meet this requirement, two main criteria must be met. The cable tension must be sufficiently high, and the cable sheath spring must operate freely to provide a constant parking brake force in both forward and reverse directions. FMVSS 1 : 105 – Hydraulic and electric brake systems FMVSS 2 : NR Description of the Safety Risk : The identified failure of the parking brake may result in a crash, which is assessed as “unlikely”. The driver could be inside the vehicle and will therefore be able to apply the brakes if the vehicle begins to move. Also, the vehicle is more likely to move when fully loaded and parked on a high grade, which is not a common operational situation. Description of the Cause : The cable route was changed during a design update. Clamps around the Part 573 Safety Recall Report 22V-530 Page 2 The information contained in this report was submitted pursuant to 49 CFR §573 parking brake cable sheath were added causing additional tension for this new routing, resulting in an incorrect value when validating it. Identification of Any Warning that can Occur : NR Involved Components : Component Name 1 : NR Component Description : NR Component Part Number : NR Supplier Identification : Component Manufacturer Name : NR Address : NR NR Country : NR Chronology : March 2022: Transport Canada purchases a LionC vehicle to perform CMVSS105 and CMVSS136 certification testing May 2022: Transport Canada testing begins at PMG Technologies – Automotive Test and Research Center June 6, 2022: Request from Transport Canada to support LionC testing as parking brake testing does not meet compliance requirements June 9-10, 2022: Joint testing between Lion Electric Company, Transport Canada and PMG Technologies to find the problem Description of Remedy : Description of Remedy Program : First, a notice and instruction will be issued to the owners of the impacted vehicles advising them of the non-compliance and the precautions to be taken regarding their vehicle. As a second step, Lion will contact customers to determine the date of service. Part 573 Safety Recall Report 22V-530 Page 3 The information contained in this report was submitted pursuant to 49 CFR §573 How Remedy Component Differs from Recalled Component : NR Identify How/When Recall Condition was Corrected in Production : This recall will be corrected on all vehicles in production as of August 15, 2022. Recall Schedule : Description of Recall Schedule : We do not have Dealer to advise Planned Dealer Notification Date : NR – NR Planned Owner Notification Date : AUG 22, 2022 – AUG 31, 2022 * NR – Not Reported

**************************************************************************************************************

OMB Control No.: 2127-0004 Part 573 Safety Recall Report 22V-530 The information contained in this report was submitted pursuant to 49 CFR §573 Manufacturer Name : Lion Electric Company Submission Date : JAN 12, 2023 NHTSA Recall No. : 22V-530 Manufacturer Recall No. : NR Manufacturer Information : Manufacturer Name : Lion Electric Company Address : 921, chemin de la Riviere-du-Nord Saint-Jerome, Quebec, Canada 00 J7Y 5G2 Company phone : 1-855-546-6706 Population : Number of potentially involved : 39 Estimated percentage with defect : 90 % Vehicle Information : Vehicle 1 : 2020-2022 Lion LionC Vehicle Type : BUSES, MEDIUM & HEAVY VEHICLES Body Style : OTHER Power Train : HYBRID ELECTRIC Descriptive Information : We have determined the number of impacted vehicles with our database and these are all LionC vehicles produced and sold in the United States Production Dates : JUN 29, 2020 – JUL 22, 2022 VIN Range 1 : Begin : NR End : NR Not sequential Description of Noncompliance : Description of the Noncompliance : Tests were conducted by Transport Canada, and it was found that the Lion C parking brake system, if not properly adjusted, did not meet the minimum requirement of CMVSS/FMVSS 105, section S5.2.2. To meet this requirement, two main criteria must be met. The cable tension must be sufficiently high, and the cable sheath spring must operate freely to provide a constant parking brake force in both forward and reverse directions. FMVSS 1 : 105 – Hydraulic and electric brake systems FMVSS 2 : NR Description of the Safety Risk : The identified failure of the parking brake may result in a crash, which is assessed as “unlikely”. The driver could be inside the vehicle and will therefore be able to apply the brakes if the vehicle begins to move. Also, the vehicle is more likely to move when fully loaded and parked on a high grade, which is not a common operational situation. Description of the Cause : The cable route was changed during a design update. Clamps around the Part 573 Safety Recall Report 22V-530 Page 2 The information contained in this report was submitted pursuant to 49 CFR §573 parking brake cable sheath were added causing additional tension for this new routing, resulting in an incorrect value when validating it. Identification of Any Warning that can Occur : NR Involved Components : Component Name 1 : Parking brake Component Description : parking brake system Component Part Number : 15300018_00 Supplier Identification : Component Manufacturer Name : NR Address : NR NR Country : NR Chronology : March 2022: Transport Canada purchases a LionC vehicle to perform CMVSS105 and CMVSS136 certification testing May 2022: Transport Canada testing begins at PMG Technologies – Automotive Test and Research Center June 6, 2022: Request from Transport Canada to support LionC testing as parking brake testing does not meet compliance requirements June 9-10, 2022: Joint testing between Lion Electric Company, Transport Canada and PMG Technologies to find the problem To this day (2023-01-12), there is no warranty claim raised by the customers related to this issue. Part 573 Safety Recall Report 22V-530 Page 3 The information contained in this report was submitted pursuant to 49 CFR §573 Description of Remedy : Description of Remedy Program : First, a notice and instruction will be issued to the owners of the impacted vehicles advising them of the non-compliance and the precautions to be taken regarding their vehicle. As a second step, Lion will contact customers to determine the date of service. The remedy will consist off the rerouting of the cale and adjustment of the parking lever Lion Electric will assume all cost of the recall. How Remedy Component Differs from Recalled Component : The recalled component will stay the same. Only the routing of the cable will change and the adjustement of the system Identify How/When Recall Condition was Corrected in Production : This recall will be corrected on all vehicles in production as of August 15, 2022. Recall Schedule : Description of Recall Schedule : We do not have Dealer to advise Planned Dealer Notification Date : NR – NR Planned Owner Notification Date : AUG 22, 2022 – AUG 31, 2022 * NR – Not Reported

**************************************************************************************************************

OMB Control No.: 2127-0004 Part 573 Safety Recall Report 22V-530 The information contained in this report was submitted pursuant to 49 CFR §573 Manufacturer Name : Lion Electric Company Submission Date : JUL 22, 2022 NHTSA Recall No. : 22V-530 Manufacturer Recall No. : NR Manufacturer Information : Manufacturer Name : Lion Electric Company Address : 921, chemin de la Riviere-du-Nord Saint-Jerome, Quebec, Canada 00 J7Y 5G2 Company phone : 1-855-546-6706 Population : Number of potentially involved : 39 Estimated percentage with defect : 90 % Vehicle Information : Vehicle 1 : 2020-2022 Lion LionC Vehicle Type : BUSES, MEDIUM & HEAVY VEHICLES Body Style : OTHER Power Train : HYBRID ELECTRIC Descriptive Information : We have determined the number of impacted vehicles with our database and these are all LionC vehicles produced and sold in the United States Production Dates : JUN 29, 2020 – JUL 22, 2022 VIN Range 1 : Begin : NR End : NR Not sequential Description of Noncompliance : Description of the Noncompliance : Tests were conducted by Transport Canada, and it was found that the Lion C parking brake system, if not properly adjusted, did not meet the minimum requirement of CMVSS/FMVSS 105, section S5.2.2. To meet this requirement, two main criteria must be met. The cable tension must be sufficiently high, and the cable sheath spring must operate freely to provide a constant parking brake force in both forward and reverse directions. FMVSS 1 : 105 – Hydraulic and electric brake systems FMVSS 2 : NR Description of the Safety Risk : The identified failure of the parking brake may result in a crash, which is assessed as “unlikely”. The driver could be inside the vehicle and will therefore be able to apply the brakes if the vehicle begins to move. Also, the vehicle is more likely to move when fully loaded and parked on a high grade, which is not a common operational situation. Description of the Cause : The cable route was changed during a design update. Clamps around the Part 573 Safety Recall Report 22V-530 Page 2 The information contained in this report was submitted pursuant to 49 CFR §573 parking brake cable sheath were added causing additional tension for this new routing, resulting in an incorrect value when validating it. Identification of Any Warning that can Occur : NR Involved Components : Component Name 1 : NR Component Description : NR Component Part Number : NR Supplier Identification : Component Manufacturer Name : NR Address : NR NR Country : NR Chronology : March 2022: Transport Canada purchases a LionC vehicle to perform CMVSS105 and CMVSS136 certification testing May 2022: Transport Canada testing begins at PMG Technologies – Automotive Test and Research Center June 6, 2022: Request from Transport Canada to support LionC testing as parking brake testing does not meet compliance requirements June 9-10, 2022: Joint testing between Lion Electric Company, Transport Canada and PMG Technologies to find the problem Description of Remedy : Description of Remedy Program : First, a notice and instruction will be issued to the owners of the impacted vehicles advising them of the non-compliance and the precautions to be taken regarding their vehicle. As a second step, Lion will contact customers to determine the date of service. Part 573 Safety Recall Report 22V-530 Page 3 The information contained in this report was submitted pursuant to 49 CFR §573 How Remedy Component Differs from Recalled Component : NR Identify How/When Recall Condition was Corrected in Production : This recall will be corrected on all vehicles in production as of August 15, 2022. Recall Schedule : Description of Recall Schedule : We do not have Dealer to advise Planned Dealer Notification Date : NR – NR Planned Owner Notification Date : AUG 22, 2022 – AUG 31, 2022 * NR – Not Reported

SEOCONTENT-END