Bombardier Loses Out

MONTREAL, QUE.: SEPTEMBER 29, 2017 -- The Bombardier plant in St-Laurent on Friday September 29, 2017. The company was imposed a 200 per cent tariff by the US this week. (Pierre Obendrauf / MONTREAL GAZETTE) ORG XMIT: 59460 - 5639 Pierre Obendrauf / Montreal Gazette

MONTREAL, QUE.: SEPTEMBER 29, 2017 — The Bombardier plant in St-Laurent on Friday September 29, 2017. The company was imposed a 200 per cent tariff by the US this week. (Pierre Obendrauf / MONTREAL GAZETTE) ORG XMIT: 59460 – 5639 Pierre Obendrauf / Montreal Gazette

The Caisse de dépôt et placement du Québec decision not to select Bombardier’s bid to build cars for Montreal’s REM light-rail network could hurt the company’s international reputation, according to an industry watcher.

On Thursday, the Caisse de dépôt et placement du Québec (CDPQ) announced it had selected a bid by SNC-Lavalin and French company Alstom to build, operate and maintain rolling stock for the Réseau express métropolitain.

The deal is worth more than $1 billion.

The fact that the CDPQ, which purchased a $1.5 billion stake in Bombardier Transportation in late 2015, and the Quebec government, which has been a supporter of Bombardier, chose a different bidder could give ammunition to its competitors, said Karl Moore, a business professor at McGill University.

“How the sales people will spin it at the competitors is, ‘They can’t even win business from the people that own them’,” Moore said. “The optics are probably worse in Asia than they are in Canada.”

Bombardier said it was disappointed by the decision.

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