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LA Transit Officials OK $300 Million Rail Car Deal

Officials tentatively agreed to award a $300 million contract to Italian firm AnsaldoBreda to make 100 light-rail cars.

LOS ANGELES (AP) -- The Los Angeles County Metropolitan Transportation Authority board has tentatively agreed to award a contract to an Italian firm to make 100 light-rail cars.

The members voted 8-3 on Thursday to enter into a $300 million deal with AnsaldoBreda if the company meets several conditions in 30 days. MTA spokesman Marc Littman says they include agreeing to a $75 million letter of credit and a $2.9 million price tag for each car.

Otherwise, MTA chief executive Art Leahy can open the contract to bidding.

Labor unions support the deal after AnsaldoBreda promised to build a rail manufacturing plant in the city. But Leahy recommended against the contract, saying the firm is late on delivering the 50 cars it's making for the MTA under a base contract, and the cars are 6,000 pounds (2,700 kilograms) too heavy.