Aug 23, 2008

Bombardier streetcar deal

AlstomTramIt appears that Bombardier will lose out in any streetcar construction deal to Alstrom Transport. See my post of July 20 Streetcar deal - what is the truth? about the original bids. Alstrom Transit is located in France.

There are several parts to this issue. First the TTC determined that Bombardier's original tender would not meet the requirements. The TTC stated that the cars would de-rail on some of the tighter turns on their streetcar lines. That claim was refuted by Bombardier.

In sales, telling a prospective customer that they are completely wrong rarely results in good customer relations, in this case it led to the entire deal being re-opened.

There is a Ontario 25% Canadian Content requirement. The McGuinty government plan only requires 25% Canadian content, not 25% of the assembly being done in Canada. That means the French company could order parts, which could be made in Southern Ontario and shipped to France for assembly.

With no one in government that is willing to protect Canadian industry and workers, this this three billion dollar deal could end up in France.

There was a time when the Ontario Government would tell the TTC that they had to buy their buses in Ontario from General Motors. A contract worth $3 billion should be spent on jobs in Ontario. We are losing to many  jobs. 

No comments: