Bombardier Pushed to Build U.S. Factories
'Buy America' rules push Bombardier to United States
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July 12, 2019 - by DAVID MILSTEAD and COLIN FREEZE for theglobeandmail.com
- The U.S. policies serve to encourage Bombardier to shift production southward
U.S. policies that force governments to buy certain products from American factories are harming Bombardier Inc.'s railcar factories in Canada, the company says.
"Buy America" rules are part of what jeopardizes the long-term viability of the company's Thunder Bay plant, where Bombardier said Wednesday it will cut 550 of the 1,100 jobs because contracts from its two major customers, Metrolinx and the Toronto Transit Commission, are coming to an end.
Pressed as to whether Wednesday's announcement was a warning that the plant may ultimately close if it fails to get new orders, Bombardier Transportation spokesman Eric Prud'Homme said the company is "focusing on ensuring we fill our Thunder Bay plant's order pipeline and bring new work. … Since last fall, in every [stakeholder] meeting, we have been very transparent about the reality and challenges that our Thunder Bay plant is experiencing and we will continue to do so with every stakeholder we meet."
But the U.S. policies serve to encourage Bombardier to shift production southward – raising the likelihood that the company will eventually serve the Canadian rail market primarily from factories in the United States...