Article content

Via Rail picked Germany’s Siemens AG to supply $989-million of (US$742 million) locomotives and passenger cars, dealing Bombardier Inc. a second high-profile setback on its home turf this year.

On-time delivery was a key criterion for the decision, Via Rail said in a statement Wednesday, citing the need to maintain current services and jobs in Canada. Siemens also won a maintenance contract valued at $23.7 million (US$17.8 million) a year for 15 years, for a total value of $355.5 million (US$266.6 million). The trains will be manufactured at a Siemens plant in Sacramento, California.

We apologize, but this video has failed to load.

tap here to see other videos from our team. Try refreshing your browser, or Bombardier dealt fresh setback as Via Rail picks Siemens for $989-million train order Back to video

The German manufacturer’s gain represents a loss for Montreal-based Bombardier, which has been plagued by missed deadlines in a Toronto light-rail project and was blocked last year from bidding on a New York subway-car contract because of past delays. In February, Caisse de Depot et Placement du Quebec, which owns a minority stake in Bombardier’s rail unit, picked France’s Alstom SA to make trains for a $6.3 billion automated system in Montreal.