[Innsertnamehere]

The frames are welded in Mexico then shipped to Thunder Bay for assembly. The problem has been with supply chain from Mexico and with quality upon arrival - apparently the welds are completely substandard and essentially need to be entirely redone once in Thunder Bay. Thus the one a month schedule. With shifting the Mexico production to Quebec, they get higher quality welds the first time and stop having supply chain issues. Issue fixed. Problem is that it takes time to set up the Quebec plant - which means we are stuck with the once a month or so schedule we have now until it goes online. The good news from this announcement is that Bombardier has finally but the bullet and given up on its Mexican plant and has produced a real solution to the problem. Thing is, it now takes time to implement the solution which means we aren't likely to see ramped up production until 2017.

I bet you that this streetcar order has turned from a tidy profit for bombardier to a giant money pit at this point. They are looking at $100 million in damages from the TTC at this point and the costs of picking up and moving a plant 2 countries over.