Canada's Bombardier Inc, the world's largest maker of trains and small planes, and its Mexican partner beat out France's Alstom SA to win a US$550 million contract to build 45 trains for the Mexico City subway system.
Mexico City selected Bombardier because the company was able to secure more favorable financing terms than Alstom, which is the world's second-biggest train maker, said Javier Gonzalez, who directs the city's public transit authority.
"We were comparing prices, which is a very simple thing to do," Gonzalez said after the winning bid was announced.
Bombardier is seeking to win more train contracts and reduce its dependence on sales of the Learjet and other planes as demand for jets has slumped since the Sept. 11 terrorist attacks. The Montreal-based company is cutting 2,100 workers in the US, Canada and UK to adjust for increasing losses at airlines and slowing corporate travel.
Mexico will spend US$549.9 million to buy the nine-car trains, including interest payments on loans to finance the purchases, public transit authority Finance Director Orlando Delgado said at a news conference. Bombardier said in an e-mailed statement following the conference that its share of the contract is worth about US$319 million. Bombardier will share the contract with train maker CAF Mexico SA.
Alstom officials said they may contest Mexico City's decision on the grounds that the government miscalculated its bid. The competing bids included US dollar-denominated cash fees as well as euro-denominated bank financing. Under Mexican law, Alstom could request an investigation by the federal auditing agency, called Secodam.
"I want to manifest my displeasure," said Emilio Sacristan, who heads Alstom in Mexico.
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