A deal to build train cars in L.A. fell through. (October 31, 2009)
LOS ANGELES -- A deal to have an Italian manufacturer make rail cars in Los Angeles and, in the process, deliver jobs to this recession-ravaged region, fell through Friday.
The agreement would have had AnsaldoBreda build 100 rail cars for the Metro system at a $70-million factory that would have created 650 manufacturing jobs and put 1,000 construction workers on the job.
But a deadline to ink the $300 million contract by Friday at midnight Italian time came and went. The company has had its controversies with the Metropolitan Transportation Authority: It's three years behind schedule on another MTA order for 50 rail cars, which are more than two tons heavier than specified.
Los Angeles Mayor Antonio Villaraigosa, who had trumpeted the impending deal, was disappointed.
"In these tough economic times, it was important to make every effort to bring good jobs to L.A. and simultaneously exercise due diligence to protect public funds in pursuing this contract," he said in a statement. "Unfortunately after months of negotiations, at the last minute, satisfactory financial guarantees were not provided and the deal was not signed."
The agreement would have had AnsaldoBreda build 100 rail cars for the Metro system at a $70-million factory that would have created 650 manufacturing jobs and put 1,000 construction workers on the job.
But a deadline to ink the $300 million contract by Friday at midnight Italian time came and went. The company has had its controversies with the Metropolitan Transportation Authority: It's three years behind schedule on another MTA order for 50 rail cars, which are more than two tons heavier than specified.
Los Angeles Mayor Antonio Villaraigosa, who had trumpeted the impending deal, was disappointed.
"In these tough economic times, it was important to make every effort to bring good jobs to L.A. and simultaneously exercise due diligence to protect public funds in pursuing this contract," he said in a statement. "Unfortunately after months of negotiations, at the last minute, satisfactory financial guarantees were not provided and the deal was not signed."
