MONTREAL — The Toronto Transit Commission says it may sue Bombardier as a result of further delays in the delivery of streetcars.
Commission chairman Josh Colle says the board will consider at its Oct. 28 meeting possible legal and financial actions against the company, including a $50-million claim permitted under the contract for late delivery.
He said Bombardier Transportation advised the commission Thursday that it won't meet a commitment made in July to deliver 23 new streetcars by year-end, including 20 available for service.
The company now says it will deliver 19 cars by the end of 2015. Sixteen of them will be in service, including the 10 currently in operation.
The original contract called for 67 of 204 new vehicles ordered by the TTC to be in operation at this time.
Given Bombardier's failure to meet its past commitments, Colle said the TTC has no confidence in this latest schedule.
Bombardier (TSX:BBD.B) blamed the delays on production issues with the crimping of electrical connectors on six streetcars currently in production.
"I am incredibly disappointed to learn that Bombardier, yet again, will not be meeting their commitments to deliver new streetcars to Toronto," Colle said.
"The TTC board has lost all faith in Bombardier's public promises and ability to deliver this order. We will not let Bombardier's incompetence hold our patient and loyal customers hostage."
The company said it plans to extend production hours in the manufacturing sites assigned to the project by adding a third work shift per day.
"Bombardier regrets that its performance on this particular project has been disappointing to the Toronto Transit Commission and its riders and remains fully committed to continue to support its customer with proven solutions," it said in a news release.
