Bombardier Files Suit Against Amtrak
MONTREAL, QUEBEC--NOVEMBER 8, 2001 - 14:47 EST
Bombardier Corporation, a subsidiary of
Bombardier Inc., filed suit against Amtrak today in the United
States District Court for the District of Columbia claiming that
Amtrak disrupted its ability to produce and deliver the high-speed
trainsets and locomotives for the Northeast Corridor (Acela
Express) in a timely and efficient manner. The Corporation seeks
to recover at least US$200 million (Cdn$318 million) in damages,
which include additional and unwarranted costs incurred during the
execution of the Acela Express project. These costs have already
been accounted for by the Corporation, as part of the total
project costs.
Bombardier's claim states that Amtrak did not provide track
upgrades necessary for high-speed service. As a result, the
trains had to undergo more than a year and a half of additional
testing. "Track quality and train design go hand in hand," said
Jacques Lapare, President, North America, Bombardier
Transportation. "Had Amtrak delivered the quality of tracks
required for high-speed service, we could have avoided costly and
time-consuming testing and the trains would now be running at full
speed. Trip times would be reduced and passenger comfort would be
increased."
Bombardier's complaint also states that Amtrak provided inaccurate
information about the dimensions of tunnels, electromagnetic
interference on the Northeast Corridor and track geometry. It
further contends that Amtrak delayed decision-making on major
technical issues as well as a series of design details, which in
turn halted progress in critical areas and led to production
modifications and design revisions.
"We ask that Amtrak take responsibility for its shortcomings on
the Acela project, so that we can resolve outstanding issues.
Bombardier Transportation has delivered all 15 locomotives and 15
of the 20 trainsets called for in the US$710 million (Cdn$972
million) contract awarded in 1996, and expanded in 1998, and they
are performing well," said Lapare. "We believe the facts of this
case will show that Amtrak disrupted our ability to deliver the
Acela trainsets and locomotives on time and on budget, and caused
major costs overruns."
The 46-page complaint comes after repeated attempts by Bombardier
to achieve a settlement through negotiations. "While we regret
having to resort to legal action in this matter, we have reached
an impasse in our discussions with Amtrak and see no other
alternative to protect our rights and resolve this dispute," added
Lapare.
"We are proud to be associated with the development and
realisation of the first high-speed train project in North
America. We are delivering a very high quality product that
obviously suits the needs of Amtrak, as indicated by the very
positive comments, both public and private, that we have heard
from Amtrak and its passengers," concluded Lapare.
Bombardier Transportation is the global leader in the rail
equipment, manufacturing and servicing industry. Its wide range
of products includes passenger rail cars and complete rail
transportation systems. It also manufactures locomotives, freight
cars, propulsion & controls and provides signaling equipment and
systems.
Bombardier Inc., a diversified manufacturing and service company,
is a world leading manufacturer of business jets, regional
aircraft, rail transportation equipment and motorized recreational
products. It is also a provider of financial services and asset
management. The Corporation employs 79,000 people in 24 countries
in the Americas, Europe and Asia-Pacific and its revenues for its
fiscal year ended Jan. 31, 2001 totalled Cdn$16.1 billion. |
