BUSINESS

Bombardier Shut Out Of NYC Subway Contract Because Of Delays

The company had already been in conflict with Greater Toronto transit authorities over delays.

08/30/2017 10:16 EDT | Updated 08/30/2017 10:16 EDT
Denis Balibouse / Reuters
A Bombardier logo is pictured on the company booth during the European Business Aviation Convention & Exhibition (EBACE) at Cointrin airport in Geneva, Switzerland, May 24, 2016. Bombardier says it's been shut out of a US$3.2-billion contract to supply subway cars in New York City because of past delivery delays.

MONTREAL — Bombardier says it's been shut out of a US$3.2-billion contract to supply subway cars in New York City because of past delivery delays.

The Montreal-based company says it learned last week that its bid submitted to New York's Metropolitan Transportation Authority in December won't make it to the final round.

In a letter sent to employees, the president of Bombardier Transport's Americas division said the manufacturer's poor performance and delays "sealed the fate of our bid."

The New York transit authority declined to comment because the procurement has yet to be awarded.

Darren Staples / Reuters
A worker stands in the doorway of a train at the Bombardier plant in Derby, central England, July 5, 2011. Bombardier says it has been shut out of bidding on a multi-billion-dollar subway contract in New York because of prior delivery delays.

Its decision follows Bombardier's problems in delivering a prototype light rail car and streetcars that have soured its relationship with Toronto transit authorities.

Bombardier spokesman Eric Prud'homme says the company is disappointed by the decision but notes that the loss of the contract to supply up to 1,700 subway cars is not expected to have an impact on employment at its facilities, including its Plattsburgh, N.Y. site.

The company has won other rail contracts around the world and has bid on helping New York State to improve commuting in the city by supplying new rolling stock and enhancing signalling so trains can run more frequently.

Prud'homme says Bombardier is transforming its global manufacturing operations, but New York's decision affects a relationship that has endured for 35 years and seen the delivery of nearly 2,000 subway cars.

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