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Bombardier Transportation is the German subsidiary and rail equipment division of Bombardier Inc. It is one of the world's largest companies in the rail vehicle and equipment manufacturing and servicing industry. Headquartered in Berlin, Germany, Bombardier Transportation has many regional offices, production and development facilities worldwide.
With the 1975 purchase, Bombardier acquired MLW's LRC (Light, Rapid, Comfortable) tilting train design which it produced in the 1980s. In 1987, Bombardier bought the assets of US railcar manufacturers Budd and Pullman-Standard.
In 1991 the grouping Bombardier Eurorail was formed consisting of the company's European subsidiaries; BN, ANF-Industrie, Prorail, and BWS. In 1992, the company acquired Mexico's largest railway rolling-stock manufacturer, Concarril, from the Mexican government.
2000s: Western world's largest rail-equipment manufacturer
In May 2001, Bombardier Transportation acquired Adtranz from DaimlerChrysler, and became by many measurements the Western world's largest rail-equipment manufacturer. The takeover was approved by the EU Competition Commission subject to a number of minor clauses including the divestment of Bombardier's stake in Adtranz/Stadler joint venture Stadler Pankow (sold to Stadler Rail), and an agreement to retain Kiepe Electric as a supplier, and ELIN as a partner for a number of years after the acquisition. The addition of Adtranz made Bombardier a manufacturer of locomotives along with its existing product lines of passenger carriages, multiple-unit trains, and trams. With the acquisition of Adtranz, Bombardier also gained competence in the electrical propulsion components business.
After the Adtranz acquisition in 2001, Bombardier Transportation moved its core manufacturing strategy for Europe with a few legacy plants in North America for the smaller North American market:
Additionally a number of plants would have specialised manufacturing roles, including ?eská Lípa (Czech Republic) and the Pafawag facility in Poland which would supply parts and welded structures, and sites in Vienna (Austria) and Bautzen (Germany) which would specialise in light rail vehicle (LRV) manufacture whilst double deck trains for the German market would be manufactured in Görlitz. Other sites had their work mandate reduced in scope, or were closed.
In 2004 due to overcapacity in the European passenger train industry, Bombardier announced a restructuring program resulting in the closure of several plants; in the UK, the bogie production site at Pride Park, Derby, Bombardier Prorail (Wakefield), and a maintenance facility in Doncaster were closed; in mainland Europe, the plants at Pratteln, Kalmar and Amadora were to be closed, as well as plants in Ammendorf and Vetschau in eastern Germany which had been slated for closure in 2001.
In May 2014 Bombardier extended its presence in Australia by purchasing a 100% stake in Rail Signalling Service (RSS), an Australian company focused on designing and constructing rail signalling solutions. In Sep 2014 the downsizing and eventual closure of the Maryborough factory was announced, the factory closed in Dec 2015.
In January 2015 the government of Hungary nationalised the loss-making and under-utilised Bombardier carriage works at Dunakeszi (Bombardier MÁV Kft., Hungarian), acquiring a 64.9% stake for $7.8 million.
Former headquarters in 2016
In May 2015 the parent company Bombardier Inc. announced that it intended to split or spin-off Bombardier Transportation as a separate publicly traded company, while retaining control as the majority owner. Lutz Bertling, president and CEO of Bombardier Transportation stated that a primary motivation for the sell off was to increase the company's financial flexibility, for potential acquisitions or consolidations, allowing the company to better compete with an anticipated Chinese presence in the European market. An IPO was planned for late 2015. In late 2015 the public investor Caisse de dépôt et placement du Québec (CDPQ) acquired a US$1.5 billion stake in Bombardier Transportation in the form of a bond/equity hybrid, with the shares returned to CDPQ dependent on the financial performance of the company. The investment initially representing a 30% stake - a valuation of $5 billion. The sale was required in part to continue the financing of the parent company's CSeries jet, a major cause of a $4.6billion loss for the parent company in 2015.
In late 2015 the National Railway Company of Belgium awarded a Bombardier/Alstom consortium a large EUR3.3 billion contract for 1,362 M7 doubledecker passenger rail vehicles, with a value to Bombardier of around EUR2.1 billion.
In August 2016 Bombardier opened a 6,000 square metres (65,000 sq ft) production facility in Isando, Johannesburg, South Africa. The site was specialised for the production of electric traction equipment (Mitrac).
In December 2016 citing a 'challenging market environment', Bombardier said that a 'strategic realignment' would put 'a strong focus on product standardisation and site specialisation in order to become more efficient and effective'. Up to 2,200 jobs are expected to go, with the German plants in Hennigsdorf, Görlitz and Bautzen reportedly most affected.
By 2018, Bombardier was the 3rd largest rail-equipment manufacturer in the Western World and fourth globally, eclipsed by CRRC, Siemens and Alstom.
Sale to Alstom
In February 2020, Alstom agreed terms to buy the Bombardier Transportation division and signed a Memorandum of understanding to do so for between EUR5.8 billion and EUR6.2 billion. The deal requires approval by Alstom shareholders at a meeting to be held in October 2020 and approval by European regulators. Bombardier's major shareholder, Caisse de dépôt et placement du Québec, had already agreed to the sale. In July 2020, the European Commission approved the sale and it is expected to close in the first half of 2021.
Bombardier's standard metro vehicles are the mid-sized fully automated and driverless Bombardier Innovia Metro with the option for linear induction motor propulsion or a conventional rotary motor, and the high-capacity customizable Bombardier Movia Metro, which is powered by conventional motors and can also be fully automated. In addition, Bombardier has produced many custom metro models not based on either model.
Mexico City Metro: NC-82(First Canadian Rolling Stock Based on Mexican NM79 Series) NM-02(Co-Built with CAF) and Bombardier participated in the Refurbish and Rehabilitation Program for Alsthom original MP68 rolling stock)
Bombardier's locomotives are mostly linked to their acquisition of Adtranz and Montreal Locomotive Works, as well as joint venture with Alstom. Via the acquisition of Adtranz, Bombardier was able to obtain some cornerstone technologies, such as the three-phase drive technology developed by plant in Mannheim, which is the worldwide center of competence for the development of locomotives.
Train operation: Bombardier Transportation operates a number of commuter and light rail systems under contract with various transit agencies. It has been the operator for six of the seven GO Transit commuter train lines in Ontario since 2008. As of February 2015, It now operates all GO Transit rail train lines. In 2015, it also began the operation of the Union Pearson Express airport link in Toronto. Other systems operated by Bombardier include SunRail in central Florida, MARC Train's Brunswick and Camden Lines in Washington and Maryland, the Sprinter and Coaster lines in the San Diego area, and the River Line in New Jersey. The company also operates a number of airport people-mover systems, typically systems it built, such as the AirTrain JFK and AirTrain Newark in New York City under contract with the Port Authority of New York & New Jersey.
From 2012/2013, the Savli factory (India) is also planned to assemble Electro-Motive Diesel products for Asian customers.
In November 2016, Bombardier Transportation signed an eight-year contract worth of $331 million to supply operating and maintaining services with Réseau de transport métropolitain's six commuter rail lines in Montreal.
Bombardier Transportation has production facilities or product development in:
Former ABB Werk-Sued Mannheim - rail vehicle drive and control systems; passenger and signalling systems; inductive charging (PRIMOVE); as well as project management, sales and fleet management/), and others.
In early 2013, Deutsche Bahn announced that it was suing Bombardier for EUR350 million because of some serious defects in trains used on the suburban S-Bahn rail network in Berlin. This was in addition to the EUR160 million it was asking for from Bombardier because of problems with more than 200 regional trains operating in southern Germany and problems with the brakes in regional and local trains in Munich. The matter was settled out of court in March 2015. Lutz Bertling, head of Bombardier's transportation division at the time, confirmed the two firms had come to an agreement, saying: "The settlement is a positive signal for our future cooperation."
The investigation report alleges that Bombardier provided gifts and trips to Canada for civil servants and politicians involved in the contract decision, which was based on revenue expected from an inflated estimate of 180,000 passengers per day using the service. It also alleges that Bombardier created a $2-million slush fund for the Canadian citizen Kim Hak-Pil, a high-ranking Bombardier executive in South Korea. Bombardier has consistently denied the corruption allegations, stating that "They were not pleasure trips. There is a need to convince the people that our technology works well.... If it had been corruption, they would have charged us." The statute of limitations has now expired, due to lack of evidence according to Bombardier.
Everline operation has been financially troubled since construction was completed in 2010. The system remained dormant until service began in 2013 while the line owner successfully negotiated with the city of Yongin a minimum revenue guarantee of 29.5 billion KRW per year regardless of passenger load. This is said to be a serious burden for the city because ridership is reported to have risen to only about 20,000 passengers per day on the 30 carriages, or about a quarter of the maximum possible capacity of the fleet in a 12-hour day. A reason suggested for this is the fare of 1100 KRW (about US$1 in 2015); it is impossible to pay for Everline trips via a transfer surcharge on a connecting subway ticket. A 2014 web page of a Seoul tour service retailer makes no mention of the Everline among the suggested modes of bus transport between Seoul and Everland. A lawyer who filed legal action on behalf of the citizens of Yongin is reported to have provided details about Bombardier's pursuit of the contract. He said that "between 2003 and 2005, Bombardier funded three luxurious trips to Canada to each of 37 people" including 18 Yongin city councillors on so-called "LRT field trips".
Toronto Flexity streetcars in December 2018
Toronto Transit Commission
On 16 October 2015, the Toronto Transit Commission (TTC) announced that it has asked its board to consider legal action against Bombardier. TTC staff is recommending that the TTC board "commence legal action, or make a claim allowed for already in the contract, of $50 million for late delivery" against Bombardier. Bombardier had committed to delivering 67 custom-built Flexity Outlook streetcars to the TTC by October 2015 for its streetcar system, but only 10 were in service at the time.
On 28 October 2015, the TTC board voted in favour of a lawsuit against Bombardier "for at least $50 million to recoup lost costs", according to Chair Josh Colle, because of the company's failure to deliver the additional new streetcars.