LA Rail Car Contract Falls Through

Deal to build 100 rail cars for Los Angeles County's transit system has fallen through, costing an estimated $368 million in economic activity and hundreds of jobs.

Nov 2nd, 2009

LOS ANGELES (AP) -- A deal to build 100 rail cars for Los Angeles County's transit system has fallen through, costing the region an estimated $368 million in economic activity and hundreds of jobs.

Italian manufacturer AnsaldoBreda was positioned to win the $300-million contract with the Metropolitan Transportation Authority but last-minute talks collapsed before the Friday night deadline. MTA negotiators refused to agree to new concessions asked for by the company.

Mayor Antonio Villaraigosa expressed disappointment, saying the deal would have included a $70-million local factory that would have created hundreds of jobs.

AnsaldoBreda is three years behind schedule on an existing contract to deliver 50 rail cars to the MTA.

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