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California Briefing / L.a. County

Rail-car deal falls through

November 01, 2009|Howard Blume

A tentative deal to build 100 rail cars for the county's transit system has fallen through, taking with it plans to build a $70-million factory that would have created hundreds of local jobs.

AnsaldoBreda, an Italian manufacturer that is three years behind schedule on an existing contract to deliver 50 rail cars to the L.A. County Metropolitan Transportation Authority, was poised to win the new $300-million contract.

But hours before the deadline late Friday, the company raised new issues -- including a cap on daily penalties for delivering behind schedule, the MTA said. MTA negotiators declined, and time expired.

Officials from AnsaldoBreda could not be reached for comment.

-- Howard Blume

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