Toronto tran­sit calls missed de­liv­ery tar­get ‘unac­cept­able’

Calgary Herald - - FINANCIAL POST - ROSS MAROWITS

Bom­bardier Trans­porta­tion is reignit­ing dis­ap­point­ment in Toronto by no­ti­fy­ing the city’s tran­sit au­thor­ity Thurs­day that it won’t meet this year’s tar­get for de­liv­er­ing street­cars.

The Montreal-based com­pany’s rail di­vi­sion says it in­formed the Toronto Tran­sit Com­mis­sion (TTC) that be­cause of sup­ply chain is­sues it will de­liver 65 ve­hi­cles by the end of the year, short of its orig­i­nal tar­get of 70.

Bom­bardier says it has met every quar­terly de­liv­ery com­mit­ment since launch­ing its turn­around plan last year to get pro­duc­tion back on track.

It ex­panded the pro­duc­tion line in Thun­der Bay, Ont., hired more em­ploy­ees, in­vested in de­vel­op­ing its man­u­fac­tur­ing sites and called upon the ex­per­tise of its global work­force.

“We own this chal­lenge, and we fully in­tend to do every­thing nec­es­sary to mit­i­gate the im­pacts,” said com­mu­ni­ca­tions direc­tor Eric Prud’Homme.

Con­se­quently, it will in­crease pro­duc­tion by do­ing fi­nal as­sem­bly at two sites and adding ad­di­tional sup­pli­ers.

TTC chair­man Josh Colle and CEO Andy By­ford called the de­liv­ery short­fall “ex­tremely dis­ap­point­ing and frus­trat­ing.”

They said there should be 146 new street­cars in ser­vice, in­stead of just 45. “This is com­pletely unac­cept­able,” they said in a news re­lease. “The TTC is hav­ing to con­tinue to use buses on street­car routes to meet rid­er­ship de­mand.”

The tran­sit agency launched a $50-mil­lion law­suit against Bom­bardier in 2015 for its on­go­ing in­abil­ity to meet de­liv­ery tar­gets.

It also is­sued a re­quest for in­for­ma­tion last month from po­ten­tial sup­pli­ers who can de­liver 100 street­cars that are part of the op­tions in the Bom­bardier con­tract.

Bom­bardier main­tains that it re­mains on track to de­liver the en­tire or­der of 204 street­cars by the orig­i­nal con­tract dead­line of 2019.

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