Montreal-based Bombardier has informed employees that its bid on a $3.2-billion contract with New York’s transit authority has been sidelined, reports Canadian Press. The reason given is past poor performance and delays.
Transit officials in Toronto have been furious over Bombardier’s slow delivery of light rail cars and new electric trams and they will consider purchasing from a different company in future. Bombardier has admitted it might not be able to fulfil its promise to deliver 70 new trams by the end of this year but is working hard to achieve that goal.
The New York contract was for as many as 1,700 subway cars and is one of several that Bombardier has bid on around the world.
At the same time, the Globe and Mail reports that an employee of Bombardier is facing bribery charges in Sweden. If Evgeny Pavlov is found guilty, Bombardier could be shut out of future infrastructure contracts with the World Bank.
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