MONTREAL _ 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 (TSX:BBD.B) 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.