News   GLOBAL  |  Apr 02, 2020
A Message to Our Readers
 8.9K     0 
News   GLOBAL  |  Apr 01, 2020
EarthCam Time-Lapse Documents Rafael Viñoly-Designed New Stanford Hospital Construction
 40K     0 
News   GLOBAL  |  Apr 01, 2020
Resort Town
 5.1K     0 

I don't know how it would be advantageous to ban Bombardier from bids for an extended period of time. For such a measure to add value the condition should have been attached to the original contract so Bombardier could see the threat coming closer and closer and react, or it would have to apply now until such time as they catch up with their timelines or meet some objective that would be achievable yet challenging. Applying the condition now for an extended period of time not tied to any desirable result only punishes ourselves with inflated prices due to less competition, no chance for fleet commonality, and really just looks vindictive.

Thank goodness the new guy at Bombardier Transportation North America is actually doing something rather than crossing his fingers hoping the capability gap at the Mexican plant will solve itself and magically not only would Mexico solve it's issue but find a way to go significantly faster than originally predicted before any slippage occurred and Thunder Bay with their other orders to fill would miraculously also go faster than originally predicted as well. This new timeline shows how out of touch with any sort of reality the previous leadership was.

On the Bombardier federal "bailout" side of things, there is no bailout, there is an investment request. Rob Dewar had made it clear that they don't need the federal funding to survive. The funding just gives them greater financial leeway to make deals and make decisions. It is only the aerospace side of the house with any fiscal imbalance and it is due to taking on multiple projects at the same time, supply chain teething, and an engine failure that took time to fix. They probably should have entered the CSeries project with a bit more contingency but compared to other industry projects the program has gone fairly smoothly save for the marketing and sales plan. Sounds like there has been a change in leadership on that side of things too and a new willingness to price the product at a price that can sell rather than some dream premium for greatness based on fuel prices that no longer exist. All said though this project will almost certainly make money, and wasn't anything near the screwup of the 787.
 
EnviroTO said:
I don't know how it would be advantageous to ban Bombardier from bids for an extended period of time..
Click to expand...
Indeed, remove a competitor, and any bids from Siemens will have just jumped in price. Again, it goes back to the TTC's options and switching costs. Remove an option, and the remaining vendors will adjust their bids accordingly, upward.
 
I would bet at the very least, liquidated damages related to late penalties will be that much higher in the next contracts. Might have to balance it out with early delivery incentives too so supplier don't price it in too high, but commercial terms will need to transfer more risk next time around for sure.
 
nfitz said:
They've gotten a clear track record with the GO and TR cars. If they are actually going to take the Mexico plant out of the equation, then this could be a good long-term fix, given La Pocatière's long history. They've had no problems building the GO frames there.

Where were the TR frames done (honest question)?
Click to expand...

The BiLevel cars have only ever been made in Thunder Bay, and completely made up there at that. Until the new CEM cars started being built, they didn't have frames either, per se.

The TRs body panels were fabricated in La Pocatière and then shipped to Thunder Bay for assembly.

Dan
Toronto, Ont.
 
Can you believe it.... all this is going on and Bombardier's management is proposing improvements to the stock options available to its senior executives.

http://www.theglobeandmail.com/repo...e-transparency-at-bombardier/article29762812/

I bought a small number of shares of Bombardier way back in 1999. They traded at over $19 in those days. Right now the stock is at $1.99. Wonder what price the execs' new options will pay out at.


- Paul
 
I want the new guy to explain how the former guy was allowed/ordered to promise, on behalf on his company, FOUR streetcars/month starting in April, and then deliver one and essentially one/month for the rest of 2016. If they don't have the manufacturing capacity now, that was surely foreseeable then.
 
Admiral Beez said:
Where this and their other failures will hurt them most is on other tenders, mostly in Europe. It would be a high risk career move for any buyer to take on Bombardier in order to save a few million.
Click to expand...

And Bombardier deserves this. That's the beauty of the free market.
 
Talking with the boys in the US, the question was asked where would TTC and Metrolinx be regarding cars if the Sheppard LRT line stay on course with an opening date of 2014 as plan??

Thats a great question to the point, neither 509 & 510 would be seeing these new cars and very limit or no service on the Sheppard Line.

Wasn't at Wed Metrolinx/TTC meeting and would be interesting to hear what was being said about both orders.

We could be seeing a new supplier by now if the Sheppard car stay the course since the first Prototype didn't show up until 2013 and the other 2 in 2014 just in time to open the new line..
 
Admiral Beez said:
Where this and their other failures will hurt them most is on other tenders, mostly in Europe. It would be a high risk career move for any buyer to take on Bombardier in order to save a few million.
Click to expand...
Nope. Ansaldo Breda kept getting tenders after a series of poor performing orders. It seems hard to preclude a supplier, especially one with significant local presence. Look at how Bombardier received orders for railcars from Derby after the signalling contract for London collapsed.
 
  • Like
Reactions: rbt
dowlingm said:
Nope. Ansaldo Breda kept getting tenders after a series of poor performing orders. It seems hard to preclude a supplier, especially one with significant local presence. Look at how Bombardier received orders for railcars from Derby after the signalling contract for London collapsed.
Click to expand...
AFAIK, Flexity tram delivery in Europe is fine. Berlin put in another option for more cars in 2015. Vienna made a large order recently. Innsbruck ordered more from BBD. If the TTC streetcars were produced in Europe, it will probably be on scheduled too given their past performance. It seems to be an isolated North America problem.

Every company screws up somewhere. It just happens that BBD screwed up for Toronto. That doesn't mean they have problems with the TRs and GO cab cars. I won't think this Flexity delivery problem would affect their orders in Europe.
 
reliefline-7.jpg

From: http://torontoist.com/2016/04/376409/
 
TTC streetcar contract issues being addressed, Bombardier CEO says

From The Globe and Mail, at this link.

Bombardier Inc. president and chief executive officer Alain Bellemare says he’s aware of the problems surrounding a 204-vehicle streetcar contract for Toronto and that the issues are being addressed.

“Clearly we’re not pleased with the performance that we have on some of these projects and we’re addressing that,” Mr. Bellemare said on a conference call with analysts Thursday to discuss the company’s first-quarter financial results.

He was responding not only to a question about the delivery delay of Toronto Transit Commission streetcars but other problem contracts as well, including delays on a signalling and control system for London, which a report last month said was a “shameful” performance.

“We recognize the issues. We are committed to fixing it. We’re putting plans in place and we’re going to execute on it,” he said.

Bombardier’s rail unit, Bombardier Transportation, has a new president, Laurent Troger, who has “already made significant leadership changes as well on his team,” Mr. Bellemare said.

“Laurent is focused on operational execution and improving the performance on all projects,” he said.

Montreal-based Bombardier has a $1-billion (U.S.) commitment from the Quebec government to invest in its new C Series jet program and is seeking an additional $1-billion from the federal government.

TTC chair Josh Colle said on Wednesday that government aid from Ottawa would be “a slap in the face” for Toronto unless the company can first sort out the problems bedeviling the streetcars it is building for the city.
​
 
You must log in or register to post here.

Back
Top