A bad year for Bombardier, the company bringing light rail vehicles to Waterloo Region, could get worse.
Bombardier has laid off thousands of workers this year in an attempt to improve finances.
The company has also been under fire for missing deadlines on light rail and street car contracts in Toronto.
Now, provincial transit agency Metrolinx has filed a notice of intent to cancel their contract with Bombardier to supply light rail vehicles in Toronto.
That contract is worth $770 million.
Metrolinx spokesperson Anne Marie Aikins says the company will continue to work with Bombardier but is taking the next legal step afforded to them in the contract.
“There have been some concerns about Bombardier's performance as there have been significant quality and manufacturing issues that, to-date, have not been resolved. As a result, we have taken the next step available to us through our contract.”
A spokesperson with Bombardier says they weren't surprised by the notice.
Marc-Andre Lefebvre says this step is part of the process and work on the contract continues.
“We are meeting contractual obligations. Work is ongoing and will continue to go on,” Lefebvre said.
Officials with the Region of Waterloo believe Metrolinx is trying to put pressure on Bombardier to see results.
They say the region has no intention of following suit.
Earlier this year Bombardier announced that light rail vehicles in Waterloo Region would also be delayed.
Representatives from the region were in Thunder Bay this week at the Bombardier plant to see the progress of the vehicles.
The cars are expected to arrive next year.
With reporting by Marc Venema
