Delivery delays put Bombardier out of the running on US$3.2B N.Y. subway deal

Bombardier says it's been shut out of a US$3.2-billion contract to supply subway cars in New York City because of past delivery delays.

The Montreal-based company (TSX:BBD.B) says it learned last week that its bid submitted to New York's Metropolitan Transportation Authority in December won't make it to the final round.

In a letter sent to employees, the president of Bombardier Transport's Americas division said the manufacturer's poor performance and delays ``sealed the fate of our bid.''

The New York transit authority declined to comment because the procurement has yet to be awarded.

Its decision follows Bombardier's problems in delivering a prototype light rail car and streetcars that have soured its relationship with Toronto transit authorities.

Bombardier spokesman Eric Prud'homme says the company is disappointed by the decision but notes that the loss of the contract to supply up to 1,700 subway cars is not expected to have an impact on employment at its facilities, including its Plattsburgh, N.Y. site.