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Toronto Transit to sue Bombardier over delayed streetcars

Published 2015-10-28, 06:04 p/m
© Reuters. Toronto Transit to sue Bombardier over delayed streetcars
BBDb
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TORONTO, Oct 28 (Reuters) - The Toronto Transit Commission
(TTC) plans to sue Bombardier Inc BBDb.TO to recoup at least
C$50 million ($37.9 million) in costs associated with the
delayed delivery of new streetcars, a spokesman said on
Wednesday.
The Montreal-based plane and train maker's chief executive
has also been summoned to explain its failures at the transit
authority's November meeting. The TTC also plans to consult
alternative suppliers.
The unanimous vote by the transit authority's board heaps
further pressure on the cash-strapped company, which is
struggling to complete its long-delayed CSeries narrowbody jet
program that has gone billions of dollars over budget.
urn:newsml:reuters.com:*:nL1N12S1JA
Bombardier said it would not speculate on the potential
impact of the TTC's move on its Ontario operations.
"On the issue of the TTC's claim, we must remind that not
all delays in this project have been caused by Bombardier," a
Bombardier Rail spokesman said, adding the company planned to
discuss this with the TTC.
The transit authority in 2009 awarded Bombardier a C$993
million contract to supply 204 vehicles to refresh its fleet and
improve accessibility. The adjusted terms of the contract meant
the TTC should have received 37 by the end of 2014 and a total
of 73 by the end of this year.
It had received three by the end of 2014 and said Bombardier
has said it was on track to deliver 27 by the end of the year,
according to the minutes presented at the TTC's board meeting on
Wednesday.
The TTC is North America's third largest mass transit system
by volume of passengers, behind New York City's and Mexico
City's systems.
($1 = 1.3191 Canadian dollars)

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