(The Canadian Press circulated the following story on October 10)
MONTREAL — The German city of Leipzig has ordered 12 trams worth a total of $63 million from Bombardier Transportation and has taken an option for 12 more of the rail vehicles, Bombardier announced Friday.
The company said the contract will be signed in the coming weeks. The 45-metre vehicles will be built at Bombardier’s facility of Bautzen, Germany. The propulsion system will be made at Bombardier’s site in Mannheim, Germany. The vehicles, with a total capacity for 187 passengers (106 seated and 81 standing), are suitable for high-density transportation lines.
Several other German cities as well as Krakow, Poland, have chosen Bombardier trams for their transportation systems.
Paul Tellier, who became Bombardier’s president and CEO nine months ago after a decade as head of Canadian National Railway, said last week he wants to scrap at least six plants in Europe.
However, observers have said the Montreal-based company – which is the world’s largest maker of rail transportation equipment – will have difficulty cutting capacity in Europe due to the political climate there and stringent labour laws.
Bombardier common stock (TSX:BBD.B) traded at $6.16, off three cents, at the Toronto Stock Exchange on Friday.