Bombardier vows to restore credibility after losing out on N.Y. subway contract
MONTREAL — Bombardier says it has to restore its credibility as a rail transportation leader after being 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 (TSX:BBD.B) said 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 Transportation’s Americas division said the manufacturer’s poor performance that caused a nearly 24-month delay in delivering a current order for 300 subway cars “sealed the fate of our bid.”
“Our actions have exacerbated an already difficult mobility environment in New York City and our client’s decision demonstrates that the market is no longer willing to accept delays in performance and suffer the impact of our shortcomings,” wrote Benoit Brossoit.