Bombardier could be facing a penalty of close to $50 million because it hasn’t met its obligations for the Toronto Transit Commission streetcar contract to this point.
The TTC’s Brad Ross says that’s an option the commission will be considering next month since Bombardier has already fallen short on delivering the cars.
He says the contract states that if 60 streetcars haven’t been delivered by August then the penalty portion kicks in and Ross says the commission won’t hesitate to impliment that clause if it has to. The TTC also has the choice to opt out of the contract altogether.
Bombardier has stated it’ll be ramping up it’s production to four cars a month in September and hopes to meet its obligation of 209 streetcars by 2019.