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Bombardier Transportation

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Bombardier Transportation
Company typeDivision (formerly)
IndustryRail transport equipment manufacturing
Founded1970
FounderBombardier Inc.
Defunct29 January 2021
FateAcquired by Alstom
SuccessorAlstom
Headquarters
Toronto and Berlin
,
Canada and Germany
Area served
Worldwide
ProductsPassenger trains, locomotives, bogies, propulsion units, control systems
OwnerBombardier Inc. (until 2021)
Number of employees
36,000 (2020)
ParentBombardier Inc. (until 2021)

Bombardier Transportation was a Canadian manufacturer specializing in rolling stock and rail transport, with headquarters located in Toronto and Berlin. Prior to its 2021 acquisition by Alstom, it stood among the top global producers of rail vehicles and related equipment. The company maintained a broad network of regional offices and production sites around the world.

Its range of products encompassed passenger trains, locomotives, bogies, propulsion units, and control systems. As of February 2020, Bombardier Transportation employed approximately 36,000 staff members across 63 manufacturing and engineering locations globally. Originally a division of Bombardier Inc., it was integrated into Alstom on 29 January 2021.

1970s: Establishment and initial contracts

In 1970, Canadian firm Bombardier Inc. entered the rail sector by acquiring Austria's Lohner-Rotax. While Lohner specialized in tram production, Bombardier concentrated on its Rotax engine business for Ski-Doo snowmobiles but kept the rolling stock operations active. A major breakthrough came in 1974 when Bombardier won a contract from the Société de transport de Montréal (STM) to manufacture metro trains for the Montreal Metro. The transportation division gained further strength with the 1975 acquisition of Montreal Locomotive Works (MLW), which provided an established facility for producing locomotives as well as freight and passenger railcars.

1980s: Growth across the US and Europe

After acquiring MLW, Bombardier inherited the LRC tilting train technology, which achieved limited market penetration with roughly 100 coaches sold to Canada's Via Rail. In 1987, Bombardier broadened its presence in the United States by purchasing assets from railcar manufacturers Budd and Pullman-Standard. The following year, Bombardier exited freight locomotive and car manufacturing by selling MLW to General Electric.

In Europe, Bombardier established manufacturing operations through a 45% stake acquisition in Belgium’s BN Constructions Ferroviaires et Métalliques in 1986, followed by the purchase of French builder ANF Industrie in Crespin in 1989. By this period, Bombardier had become North America’s foremost rail equipment manufacturer, having delivered 825 subway cars to New York City during the 1970s and 1980s.

1990s: Expansion into Mexico, Germany, and the United Kingdom

In 1991, Bombardier significantly increased its Canadian footprint by acquiring the Urban Transportation Development Corporation (UTDC) from Ontario’s government after its parent company Lavalin declared bankruptcy. This acquisition included Hawker Siddeley Canada’s rail manufacturing division with a key facility in Thunder Bay, Ontario.

In Europe, Bombardier consolidated its holdings into Bombardier Eurorail by combining ANF, BN, BWS (formerly Lohner assets), and English bodyshell manufacturer Prorail, acquired in 1990. The company also secured North American rights to the French high-speed train TGV through an agreement with GEC Alsthom. In 1992, Bombardier entered the Latin American market by acquiring Mexico's largest rolling stock producer, Concarril.

The late 1990s saw further European expansion with the 1995 acquisition of Germany’s Waggonfabrik Talbot located in Aachen, followed by the purchase of Deutsche Waggonbau (DW) in 1998. This deal added production facilities in German cities Bautzen and Görlitz, as well as a plant in Villeneuve, Switzerland—previously owned by DW through its acquisition of Ateliers de Constructions Mécaniques de Vevey.

2000s: Leading rail-equipment producer in the Western world

Shortly after the year 2000, the company made its most significant acquisition by purchasing Adtranz from DaimlerChrysler. Adtranz, a multinational corporation twice the size of Bombardier and recently profitable, was absorbed through this transaction. This acquisition elevated Bombardier to the position of the largest rail-equipment manufacturer globally.

In August 2000, DaimlerChrysler agreed to sell Adtranz for a price deemed modest by industry experts. The agreement included a condition that Adtranz must remain profitable in the following year; otherwise, the sale price would be adjusted downward. The European Union gave approval for the acquisition in April 2001, stipulating that Bombardier license or divest Adtranz’s regional train and tram product lines to Stadler Rail in Germany to maintain market competition. The transaction was finalized legally on 1 May 2001 at a total cost of US$725 million. Following the purchase, Bombardier Transportation relocated its headquarters to Europe but preserved some manufacturing facilities in North America to serve smaller markets.

The integration process encountered difficulties: Bombardier soon alleged it had been misinformed about Adtranz’s financial status, and merging operations took several years to complete. Initially, the merged entity operated 27 manufacturing plants across 14 countries, which led to downsizing at certain sites. In 2004, amid excess capacity in the European passenger train sector, Bombardier announced the closure of eight facilities. Later that year, DaimlerChrysler reimbursed Bombardier US$209 million, reducing the effective acquisition cost of Adtranz to $516 million.

2010s: Worldwide presence and financial challenges

Throughout the 2010s, Bombardier’s transportation segment continued to face financial difficulties, compounded by substantial debt incurred from its aviation division’s development of the CSeries airliner and Global 7000 business jet.

Between 2012 and 2015, several plants were shut down, including operations in Germany and Australia as well as a nationalized factory in Hungary. During this timeframe, Bombardier secured multiple high-value but technically demanding contracts for specialized rail vehicles: R179 cars for New York City Subway, Bay Area Rapid Transit trains, Toronto streetcars, Aventra EMUs for London Overground, and Twindexx EMUs for Switzerland’s SBB. Each contract ranged from $600 million to $1.8 billion but was plagued by delivery postponements, software malfunctions, and reliability concerns.

Under increasing financial strain, Bombardier announced plans in May 2015 to spin off its transportation division as an independent publicly traded company while maintaining majority ownership. This strategy was intended to generate capital for the CSeries program and allow Transportation to better compete with growing Chinese competition in European markets. An initial public offering was targeted for late 2015.

Prior to launching the IPO, the Caisse de dépôt et placement du Québec (CDPQ) invested US$1.5 billion for a 30% equity stake through a hybrid bond/equity arrangement linked to performance criteria.

In subsequent years, Bombardier concentrated on addressing production setbacks from previous contracts by refining its bidding process, standardizing product designs, centralizing procurement activities, and announcing workforce reductions of up to 2,200 employees in Germany. Nevertheless, penalties due to delayed deliveries significantly impacted profitability. By 2018, Bombardier had slipped to third place among Western rail-equipment manufacturers and fourth worldwide behind CRRC, Siemens, and Alstom.

Between 2018 and 2019, Bombardier divested numerous commercial aviation assets, most notably transferring the CSeries program to Airbus, thereby repositioning itself primarily as a producer of rail vehicles and business jets.

2021: Acquisition by Alstom

In February 2020, Alstom reached an agreement to purchase Bombardier Transportation for a sum ranging between €5.8 billion and €6.2 billion, formalizing the intent with a memorandum of understanding. The transaction was contingent upon obtaining consent from Alstom’s shareholders as well as regulatory clearance from European authorities. The principal shareholder of Bombardier, Caisse de dépôt et placement du Québec, had already endorsed the acquisition. Subsequently, the European Commission granted approval in July 2020. On 1 December 2020, Bombardier Inc. confirmed that the closing of the deal was scheduled for 29 January 2021 at a final price of €4.4 billion.

Rapid transit rolling stock

Bombardier offered metro vehicles including the medium-sized, fully automated, and driverless Innovia Metro, which utilized either linear induction or traditional motors. Additionally, it produced the highly adaptable and high-capacity Movia platform (now under Alstom), available with options for full automation. Beyond these standard platforms, Bombardier developed numerous bespoke models tailored to client specifications.

Notable rapid transit projects and their corresponding products were:

These offerings underscore Bombardier’s emphasis on automated, customizable transit solutions designed for major metropolitan areas globally.

Monorails

The flagship monorail product was the Innovia Monorail series.

Key installations included:

  • Cairo Monorail – Two lines under construction in Egypt: a 42 km route from October City to suburban Giza and a 54 km stretch linking Nasr City to New Cairo, with operations expected to commence in 2024.
  • Cal Expo monorail (1968)
  • Carowinds Monorail (1973) – ceased operations in 1994; vehicles sold but remain non-operational at Vidafel Mayan Palace Resort, Acapulco, Mexico.
  • Hersheypark monorail (1968), currently operating as BlueCross monorail with additional cars sourced from Six Flags Magic Mountain.
  • Jacksonville Skyway monorail (1997), constructed by Bombardier.
  • King Abdullah Financial District in Riyadh features a 3.6 km Innovia Monorail 300 line currently being built.
  • King's Dominion monorail (1975), dismantled during the 1990s and sold to Jungle Jim's International Market.
  • Kings Island Action Zone monorail (1974), removed in 1994.
  • Las Vegas Monorail (1995) – featuring the still-operational Mark VI monorail.
  • São Paulo’s Line 15 (Silver) (2014) – a 24 km INNOVIA Monorail 300 system.
  • Minnesota Zoo Northern Trail monorail (1979).
  • Six Flags Magic Mountain Metro monorail (1971), closed in 2001; vehicles transferred to Hersheypark; system dismantled by 2011.
  • Tampa International Airport monorail (1991), constructed by Bombardier.
  • Walt Disney World Resort monorail system (1989), featuring operational Mark VI trains.
  • Miami MetroZoo monorail (1984), utilizing equipment acquired from the Louisiana World Exposition of the same year.
  • Bukit Panjang LRT Line (2000) in Singapore operates Innovia trams.

It is noteworthy that Bombardier Transportation acquired Universal Mobility Incorporated’s UM III technology portfolio in 1989. UMI had developed nine monorail systems between 1969 and 1984, which are encompassed within the installations listed above.

Trams and Light Rail Vehicles

Locomotives

Following Bombardier's acquisitions of Adtranz and Montreal Locomotive Works, along with a partnership with Alstom, the company expanded into locomotive manufacturing.

With the exception of the LRC, these models are derived from European designs.

Passenger Cars

  • BiLevel Coach – designed for commuter rail services
  • MultiLevel Coach – commuter rail application
  • Formerly known as Double-deck Coach, now branded as Twindexx
  • Comet coaches – used in commuter rail operations
  • Horizon coaches – intended for intercity rail travel
  • Shoreliner coaches serving commuter rail routes
  • Coaches for the LRC
  • Superliner II – built for intercity rail service

Regular-Speed Multiple-Unit Trains

V/Line VLocity at Southern Cross Station in Melbourne

  • Aventra – electric multiple unit (EMU), successor to the Electrostar series
  • Adelaide Metro A-City 4000 Class
  • AGC – regional train available as dual-mode or electric multiple unit
  • Electrostar – EMU series including British Rail Classes 357, 375, 376, 377, 378, 379, and 387
  • Highliner – double-deck EMU operated by Metra
  • IC3 – available as EMU or DMU
  • CP2000 (Portuguese Railways Class 3400)
  • M7 – EMU serving Long Island Rail Road and Metro-North Railroad
  • MR-90 – EMU used on Réseau de transport métropolitain’s Deux-Montagnes line
  • Multiple EMUs deployed across Brisbane and South East Queensland: Interurban Multiple Unit (160 series), Suburban Multiple Unit (260 series), New Generation Rollingstock
  • RegioSwinger – tilting diesel multiple unit
  • Bombardier Talent series: Talent, Talent 2, and Talent 3 regional trains; note that production of Talent 3 was transferred to CAF in 2022
  • Turbostar – DMU counterpart to Electrostar including British Rail Classes 168, 170, 171, and 172
  • VLocity DMUs operated by V/Line
  • SNCF Class Z 50000 "Le Francilien" EMU for Transilien lines H, K, J, L, and P
  • Sprinter Lighttrain – four-car EMU for Nederlandse Spoorwegen
  • Bombardier Omneo – EMU designed for SNCF services
  • Twindexx EMU variant based on former German double-deck coach cars

High-speed trains

People movers

In addition, Bombardier supplied key components such as propulsion systems, train-control technologies, bogies, and provided fleet maintenance services.

Services

Apart from producing passenger trains and locomotives, Bombardier Transportation offered comprehensive support services tailored for commuter rail providers:

  • Maintenance: Held contracts covering fueling, storage, cleaning, and routine upkeep of commuter train fleets. Prominent clients included GO Transit, MARC Train, Réseau de transport métropolitain, and Metrolink.
  • Operations: Under contractual agreements, Bombardier managed several commuter and light rail networks. From 2008 to 2015, it operated six out of seven lines for GO Transit, expanding to all lines by February 2015. In 2015, it began running the Union Pearson Express airport connection in Toronto. Additional operations encompassed Florida’s SunRail, MARC Train routes in Washington and Maryland, San Diego’s Sprinter and Coaster, as well as New Jersey’s River Line. The company also operated airport people-mover systems such as New York City's AirTrain JFK and AirTrain Newark under the authority of the Port Authority of New York & New Jersey.
  • Manufacturing growth: Starting around 2012/2013, the Savli facility in India was designated for assembling Electro-Motive Diesel products targeted at Asian markets.
  • In November 2016, Bombardier secured an eight-year contract valued at $331 million to operate and maintain six commuter rail lines for Montreal’s Réseau de transport métropolitain.

Facilities

Bombardier Transportation maintained production and development centers worldwide:

  • Africa:
    • South Africa: A traction converter manufacturing plant located in Isando, inaugurated in 2016.
  • Asia:
    • China: Multiple joint ventures including Bombardier Sifang (Qingdao) Transportation Ltd, CRRC Changchun Railway Vehicles, CRRC Puzhen Bombardier Transportation Systems, and Shentong Bombardier (Shanghai). These facilities produced more than 4,700 passenger cars, 580 electric locomotives, and 3,000 metro cars serving China’s rail transit sector.
    • India: Manufacturing of Movia cars and electrical components based in Vadodara, Gujarat.
  • Europe:
    • Austria: Bombardier Wien Schienenfahrzeuge (formerly Lohner-Werke).
    • Belgium: Passenger vehicle production at the former BN Constructions Ferroviaries et Métalliques site.
    • Czech Republic: Production focused on freight rolling stock.
    • Denmark: Manufacturing of IC3 "flexiliner" passenger multiple units.
    • France: Production of regional trains, suburban units, and metros at the former ANF Industrie plant in Crespin.
    • Germany: Key sites dedicated to mass transit vehicles, regional trains, high-speed trains, diesel and electric locomotives, along with control systems. Facilities include former LEW Hennigsdorf near Berlin; Henschel & Son in Kassel; ABB Werk-Sued Mannheim specializing in drive/control technology, signalling systems, inductive charging technology (PRIMOVE), project management and sales; as well as the former Waggonbau Görlitz plant producing Double-deck Coaches.
    • Greece: Manufactured train components from 1999 until 2009 for OSE SA; assembly was carried out by Hellenic Shipyards Skaramaga.
    • Hungary
    • Italy: Production of FS Class E.464 units at the former Tecnomasio facility in Vado Ligure.
    • Norway: Provided servicing for Adtranz products including NSB Class 73 and GMB Class 71 from the former Adtranz factory in Strømmen; also manufactures NSB Class 93.
    • Poland: Bombardier Transportation Polska operates manufacturing plants in Wrocław (former Pafawag), Katowice, Łódź, and Warsaw.
    • Romania: Production of mass transit underground trains based in Bucharest.
    • Spain: Facility located in Trapagaran.
    • Sweden: Engaged in production, engineering and development activities including Regina EMUs.
    • Switzerland: Conducts research and design related to propulsion systems and bogies; manufactures high-capacity double-decker passenger vehicles at the former Ateliers de Constructions Mécaniques de Vevey facility in Villeneuve.
    • United Kingdom: Derby Litchurch Lane Works produces Turbostar, Electrostar, Aventra multiple units along with London Underground rolling stock such as S stock and 2009 Stock.
  • North America:
    • Canada: Engineering centers situated in Saint-Bruno, Quebec and Millhaven, Ontario; manufacturing plants located in Thunder Bay, Ontario and La Pocatière, Quebec.
    • Mexico: Engineering and production operations at Ciudad Sahagún (formerly Concarril factory).
    • United States:
      • Plattsburgh, New York
      • West Mifflin, Pennsylvania (originally Westinghouse Electric and ADtranz)
      • Pittsburg, California (initially AnsaldoBreda; leased from Hitachi Rail)
  • Oceania:
    • Australia: Facilities based in Dandenong, Victoria and Milton, Queensland.
  • South America:
    • Brazil: Monorail manufacturing site located in Hortolandia within São Paulo state.

Deutsche Bahn

At the beginning of 2013, Deutsche Bahn initiated legal proceedings against Bombardier, seeking €350 million due to significant faults found in trains operating on Berlin's S-Bahn network. This claim was supplementary to an earlier demand of €160 million concerning problems with more than 200 regional trains in southern Germany and braking system issues affecting Munich's regional and local trains. The parties reached an out-of-court agreement in March 2015. Lutz Bertling, who was then leading Bombardier's transportation division, described the resolution as a constructive indication for ongoing collaboration.

Everline

In January 2015, South Korea’s Special Investigation Unit accused Bombardier Transportation of engaging in corrupt practices related to the 2004 contract for the Everline Light Rapid Transit (LRT) system, an 18 km route linking Giheung Station to Everland amusement park through Yongin. The investigation claimed that Bombardier provided gifts and sponsored trips for officials involved in awarding the contract, which was based on an exaggerated ridership forecast of 180,000 daily passengers. Additionally, it alleged the existence of a $2 million slush fund designated for a senior Bombardier executive in South Korea. Bombardier refuted these accusations, asserting that the trips were legitimate business activities and emphasizing that no formal charges were filed due to insufficient evidence and expiration of the statute of limitations.

Since its completion in 2010, Everline has encountered financial challenges. Operations only commenced in 2013 after a period of inactivity. The line’s owner secured an agreement guaranteeing a minimum annual revenue of 29.5 billion KRW from Yongin city regardless of passenger numbers. Nevertheless, daily ridership has hovered around 20,000—approximately one-quarter of the system’s capacity—partly because of fare policy issues, including the absence of transfer fare integration with connecting subway services. Legal findings also revealed that Bombardier financed several expensive trips to Canada for Yongin city councillors during contract negotiations between 2003 and 2005.

Toronto Transit Commission

On 16 October 2015, the Toronto Transit Commission (TTC) disclosed that it had requested its board to evaluate potential legal action against Bombardier. TTC personnel recommended pursuing litigation or imposing contractually permitted penalties amounting to $50 million due to late delivery. Bombardier had committed to supplying 67 customized Flexity Outlook streetcars by October 2015 for Toronto’s streetcar network but had only delivered 10 units by that date.

Subsequently, on 28 October 2015, the TTC board voted in favor of suing Bombardier for a minimum of $50 million to recoup losses incurred from delayed streetcar deliveries, as stated by Chair Josh Colle.

See also

References

Footnotes

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