October 28, 2015 / 10:16 PM / 3 years ago

Toronto Transit to sue Bombardier over delayed streetcars

A plane flies over a Bombardier plant in Montreal, January 21, 2014. REUTERS/Christinne Muschi

TORONTO (Reuters) - The Toronto Transit Commission (TTC) plans to sue Bombardier Inc (BBDb.TO) to recoup at least C$50 million ($37.9 million) in costs associated with the delayed delivery of new streetcars, a spokesman said on Wednesday.

The Montreal-based plane and train maker’s chief executive has also been summoned to explain its failures at the transit authority’s November meeting. The TTC also plans to consult alternative suppliers.

The unanimous vote by the transit authority’s board heaps further pressure on the cash-strapped company, which is struggling to complete its long-delayed CSeries narrowbody jet program that has gone billions of dollars over budget.

Bombardier said it would not speculate on the potential impact of the TTC’s move on its Ontario operations.

“On the issue of the TTC’s claim, we must remind that not all delays in this project have been caused by Bombardier,” a Bombardier Rail spokesman said, adding the company planned to discuss this with the TTC.

The transit authority in 2009 awarded Bombardier a C$993 million contract to supply 204 vehicles to refresh its fleet and improve accessibility. The adjusted terms of the contract meant the TTC should have received 37 by the end of 2014 and a total of 73 by the end of this year.

It had received three by the end of 2014 and said Bombardier has said it was on track to deliver 27 by the end of the year, according to the minutes presented at the TTC’s board meeting on Wednesday.

The TTC is North America’s third largest mass transit system by volume of passengers, behind New York City’s and Mexico City’s systems.

Reporting by Alastair Sharp; Editing by David Gregorio

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