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Bombardier loses out on lucrative NYC subway contract

The contract was worth $3.2 billion and involved the construction of 1,695 subway cars
August 30, 2017, 11:55am

New York City’s Metropolitan Transportation Authority has axed its plan to buy 1,695 subway cars from Montreal-based transportation giant Bombardier, due to the company’s “poor performance and serious delays”, according to an internal memo that was obtained by the Journal de Montreal.

The contract was set to bring a much-needed $3.2 billion to Bombardier.

Earlier this year, the Federal government dished out $372.5 million in interest-free loans to aid the company, which has not only been struggling to land lucrative contracts, but also to complete the delivery of vehicles on existing contracts.

Bombardier’s reputation for inefficiency was in fact highlighted by its own Benoit Brossoit, the president of Bombardier Transport for the Americas in the internal memo. “Our actions exacerbated an already difficult transit situation in New York, and our client’s decision shows that the market is no longer disposed to accept delays in performance and to submit to the consequences of our actions.”

Why Bombardier is facing the wrath of Canadians

The Metropolitan Transport Authority has had a history of dealing with Bombardier’s delays. The two have been doing business for almost 35 years, but recently, Bombardier was almost two years late in delivering 300 subway cars to a section of the New York subway line.

“We are extremely disappointed as we spent considerable time developing an innovative solution that included world-class subway cars, an attractive delivery schedule, a competitive price and the creation of U.S. jobs, many in New York State,” Eric Prud’Homme, the head of public relations and communications for the Americas region at Bombardier Transportation said in a statement on Tuesday.

Torontonians too have been victims of Bombardier’s incompetence. The Toronto Transit Commission (TTC) was supposed to have received 130 streetcars by December 2016 to replace the close-to-ancient fleet that currently runs in downtown Toronto.

So far, only 40 new streetcars have been delivered.

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