February 1, 2019 / 10:36 PM / 5 months ago

Bombardier faces penalties over late deliveries in Toronto: Metrolinx

FILE PHOTO - The logo of Bombardier is seen during the Latin American Business Aviation Conference & Exhibition fair (LABACE) at Congonhas Airport in Sao Paulo, Brazil August 14, 2018. REUTERS/Paulo Whitaker

MONTREAL (Reuters) - Bombardier Inc faces financial penalties for the late delivery of three vehicles, a Toronto-area transportation agency said on Friday, as the Canadian maker of planes and trains comes under additional pressure for the performance of its largest division by revenue.

Bombardier delivered three light rail cars by a Feb. 1 contract deadline and an additional three are expected to arrive over the course of the next couple of weeks, Phil Verster, chief executive of the Ontario transportation agency Metrolinx said in a statement.

“Our contract clearly outlines financial penalties on Bombardier for delivering vehicles late,” he said in a statement. “Metrolinx will enforce the contract and the financial penalties will be applied.”

Metrolinx did not specify the penalties. A Bombardier spokesman declined to comment and referred questions to Metrolinx.

The six cars are part of a C$392 million ($299.4 million)contract for 76 light rail transit cars.

Bombardier also faces penalties over performance problems and delivery delays in separate contracts in Switzerland and New York.

Reporting By Allison Lampert in Montreal; editing by Bill Berkrot

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