Layoffs Threaten Passenger Car Order

The factory that is to build new passenger cars for use on Amtrak routes in the Midwest and California has just laid off 100 workers, throwing the future of the order into further doubt.

Nippon Sharyo had already laid off workers from its plant in Rochelle, Illinois, in 2015 and 2016.

nippon-sharyoThe Japanese company has a contract to build 172 bi-level cars with $551 million of the cost being paid for with funding from the American Recovery and Reinvestment Act.

The cars are ticketed to replace the Horizon fleet cars that are now typical on Midwest corridor trains.

Nippon Sharyo has attributed the layoffs to continuing production and mechanical issues. Chief among those is the failure of a prototype car to pass a stress test in 2015.

The funding for the passenger cars will expire on Sept. 30, 2017, and revert back to the U.S. treasury if it is not spent by that date.

“The Midwest states know that there are delays relevant to Sumitomo and Nippon Sharyo being able to deliver equipment,” Tim Hoeffner, head of the Michigan Department of Transportation’s rail office, told Trains magazine. “The states don’t know what the new delivery schedule is yet and are waiting for Nippon Sharyo, California (which is leading the railcar procurement) and the Federal Railroad Administration to come back to us with a proposed schedule and a path forward.”

Advertisements

Tags: , , , , , , , ,

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s


%d bloggers like this: