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Bombardier Case Study

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Bombardier Case Study
The company Bombardier is a global manufacturer of various transportation vehicles such as Streetcars, Trains, Dash-8 Q400, Challenger, and the Global line of aircraft. Bombardier is in a lucrative industry with a very competitive atmosphere with the likes of companies like, Boeing and Airbus. The contracts these manufacturers bid on are in the several hundred million (and billion) dollar ranges. These companies must find ways to deliver quality products at competitive prices. When the company cannot deliver on these contractual obligations, the results are disastrous.
Bombardier invoked two large blunders. The first was a streetcar delivery for The Toronto Transit Commission, which was not completed by the agreed upon date in 2015 and the ones that they did deliver, were not correct. This was a $1.2 billion dollar contract. The same thing happened again but with Metrolinx trains to be delivered to Montreal where Bombardier overpromised and under delivered, once again. The source of these blunders was due to Bombardier outsourcing a significant amount of the work to their plant in Mexico. The labourers there could not be relied upon to complete their assigned tasks on time, so they rushed their projects and created inferior products or low quality that were still late. The consequences of this are a damaged reputation and a loss of money due to the contract limitations being broken. The opportunity cost lost at future contracts due to the poor reputation could be the most significant implication. After all, they are worth in the …show more content…
Word Count: 524

References
1”AMT Cancels $103M contract proposal destined for Bombardier” May 17, 2016 retrieved on May 6, 2017 from http://www.cbc.ca/news/canada/montreal/amt-cancels-103m-contract-proposal-destined-for-bombardier-1.3585922
2 Jeffords, Shawn “Bombardier Promises Streetcar delivery to TTC” December 2016 retrieved on May 7, 2017 from
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