Bombardier: Encyclopedia II - Bombardier - Criticisms

Bombardier - Criticisms

Bombardier has been criticised in Canada and abroad over the subsidies it receives from various levels of government. They have been described as corporate welfare and accused of violating free trade agreements, especially by Brazil. Canada and Bombardier have countered by citing Brazil's direct and indirect subsidies to Embraer, its own major aircraft manufacturer and one of Bombardier's principal competitors in the regional jet market.

The government of Canada provided a large interest rate subsidy for the financing that made possible Bombardier's sale of metro trains to the New York City Subway. Some Canadians object to such amounts of money being given to a private for-profit company, but the government argues that the subsidies create many jobs. Recently Bombardier opened a engineering design agreement with an Indian company which subsidy critics argue may result in a loss of jobs in Canada.

Bombardier's reputation may have been tarnished in the western United States by its association with the privately-funded Las Vegas Monorail system, which has been operational since December 24, 2004 but was plagued by delays due mechanical problems. The system reportedly lost US$85,000 per day while closed over a period of four months.

Recently, some human rights and Tibet support groups in Canada, the U.K., and the U.S. have put pressure on Bombardier over its sale of passenger carriages to the People's Republic of China for projects including the controversial Qingzang Railway line into Tibet.

Adapted from the Wikipedia article "Criticisms", under the G.N U Free Docmentation License. Please also see http://en.wikipedia.org/wiki