Ontario's Metrolinx regional transportation agency is ramping up pressure on Bombardier to deliver a prototype train for use in Toronto.
Metrolinx has issued a formal notice of intent to terminate its $770-million contract with the Montreal-based company, a step that would be required if the agency ultimately asks a court to rip up the deal.
The notice was sent to Bombardier this week after the company missed a commitment to deliver a prototype by the end of October.
The company says it is not in default of its contractual obligations and will deliver the 182 light rail vehicles on time.
Production isn't slated to begin until 2018.
While the contract is relatively small for Bombardier, industry observers say continued delays which follow problems with other Toronto transit projects raise public concerns about the company as it is seeking US$1 billion in financial assistance from the federal government.
