Alstom acquires Bombardier train division amid major VIA Rail contract
What happened
Alstom acquired Bombardier's train division. Separately, Alstom Canada secured a contract from the Government of Canada to supply 313 passenger rail cars for Via Rail's Long-Distance, Regional, and Remote routes. The order includes approximately $4 billion for the cars and nearly $700 million for technical support over 15 years.
From dailyhive.com
Why it matters
The acquisition of Bombardier's train division by Alstom impacts Canadian rail manufacturing. Alstom's contract with the Government of Canada is part of a larger investment of more than $4.7 billion for new passenger rail cars and long-term support for Via Rail's aging fleet.
From dailyhive.com
Who's involved
- AlstomAcquired Bombardier's train division and secured the contract to supply VIA Rail.
- BombardierDivested its core train manufacturing division to Alstom.
- Government of CanadaInvested over $4.7 billion in the VIA Rail fleet upgrade and contracted Alstom.
- Via RailIs receiving 313 new passenger rail cars as part of its fleet renewal.
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- AlstomSpeculative
Alstom could see revenue increase from securing the multi-billion dollar contract to supply VIA Rail.
- Via RailSpeculative
Via Rail might see core operations supported by the new fleet acquisition and government funding.
- OntarioSpeculative
Ontario could see job demand increase due to Alstom Canada's manufacturing facilities.
Possible ripples
Who this could reach next, traced step by step from the reporting. Possibilities worth considering, not forecasts.- How could the Alstom acquisition and rail investment affect Innovation, Science and Economic Development Canada?Alstom's rail contract could boost Canadian manufacturing and jobsLikely
- La Pocatière may benefit from new VIA Rail car manufacturingLa Pocatière could see increased manufacturing activity from VIA Rail car productionLikely
- Transport Canada may oversee $4.7 billion rail fleet replacementTransport Canada may face increased oversight demands for $4.7 billion rail upgradeLikely
- Alstom's rail contract may boost Northwestern Ontario's manufacturing jobsAlstom's rail contract may boost Northwestern Ontario's manufacturing jobs.Likely
- Via Rail may receive 313 new cars to replace aging fleetVia Rail's aging fleet will be replaced by 313 new passenger cars.Likely
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The entities involved
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Alstom
French rolling stock manufacturer
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Bombardier
aerospace and transportation manufacturer in Canada
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Government of Canada
federal government of Canada
Related events
- Alstom is building new passenger cars for Via Rail using facilities in Thunder Bay and Montreal.
- Alstom is involved in the Toronto Transit Commission's new subway trains program and is expanding its supplier base in Canada.
- Alstom is lobbying the government for company survival and contracts, promoting inward focus for Canadian industry.