Metrolinx is cutting its order of light rail transit vehicles for the Eglinton Crosstown project by more than half and has also negotiated new contract terms that will have “significant financial penalties for Bombardier if they fail to deliver quality vehicles on-time,” according to a statement from Metrolinx.

The new agreement will see Bombardier manufacture 76 light rail vehicles (LRVs) instead of the 182 originally ordered.

Despite Metrolinx’s significant slash to the order, Bombardier is still boasting an 18-month contract extension to operate and maintain all of the transit agency’s GO Trains, and there will be “no financial change to the contract,” according to a Bombardier spokesperson.

Earlier this year, Metrolinx went to court to try and cancel the $770-million LRT manufacturing contract with Bombardier, however an Ontario judge ruled the agreement could not be cancelled without first going through dispute resolution.

ALSTOM COMES TO TOWN

Alstom Canada, the company building light rail vehicles that will replace Bombardiers, announced Thursday it will be creating a manufacturing plant in the Toronto region. The facility will employ 200 people.

Earlier this year, Metrolinx announced a deal with Alstom as an alternate supplier of LRTs, with the French-based manufacturer building a total of 61 vehicles for GTA projects.

17 vehicles are slated for the Finch West LRT project and 44 for Eglinton, if required.