Bombardier slammed by London for "shameful" Tube project

|About: Bombardier Inc.A (BDRAF)|By:, SA News Editor

London’s city council blasts Bombardier (OTCQX:BDRAF, OTCQX:BDRBF) for “duping” the city into awarding it a train signaling contract that it was incapable of delivering, creating “nothing short of a disaster” for the London Underground.

Bombardier’s transportation division was awarded a contract to upgrade the London Underground’s automatic train control in 2011, but delays and cost overruns quickly overwhelmed the project; the contract was cancelled in December 2013, costing the city £85M, and re-awarded to French transportation company Thales but will be delivered five years late and cost £886M more than originally planned.

London’s scathing report comes as Toronto's transit commission continues to wrestle with Bombardier over a C$1.2B contract for 204 new streetcars, of which only 16 have been delivered even though the original timeline planned to have 67 on the road by last October.

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