Ontario signs deal with Bombardier rival

Ontario’s transit agency Metrolinx, a major customer of Bombardier’s light rail vehicles, announced Friday it has turned to a competitor of the Montrealbased company over “serious concerns” quality vehicles won’t be delivered on time.

The deal marks the latest blow to Bombardier, after a week that saw major institutional investors calling for a change in leadership due to a “lapse of governance,” eventually forcing the chairman of its board to relinquish his executive role.

Metrolinx said it has entered a contract with French manufacturer Alstom for 61 light rail vehicles, a plan it calls “a safety net” in case Bombardier fails to deliver lightrail vehicles for two major projects in Toronto.

Under the $528 million agreement, Alstom will build 17 vehicles for the Finch West LRT project and, if necessary, 44 for the Eglinton Crosstown, both projects that Bombardier has already agreed to build vehicles for. The deal also includes an option for additional vehicles.

If Bombardier meets its contractual obligations and delivers vehicles on time, the 44 Alstom vehicles designated for the Eglinton Crosstown line will be reassigned to the Hurontario LRT project.

“Over the past several months, Metrolinx has had significant concerns regarding Bombardier’s ability to deliver quality vehicles according to the contract,” Ontario’s Minister of Transportation Steven Del Duca said at a news conference.

“I refuse to stand idly by during this time of uncertainty. From my perspective, it’s essential that we take responsible action in order to ensure that we successfully deliver on our promise to open these transit projects on time.”

Bombardier released a statement saying the company is “ready, able, and willing to deliver these vehicles to the people of Toronto on time.”