MBTA leadership agreed on what the transportation authority is calling a “reset” with the company, CRRC, including another $148 million for hundreds of Red and Orange Line cars the manufacturer is still working to deliver.
The MBTA’s Board of Directors voted to amend the contract Thursday.
The initial deal dates back to 2014 – when the company won a $566 million contract to produce new Orange Line and Red Line subway cars for the transportation authority.
The cars were to be manufactured in Springfield, where a plant was built and work began in 2018, with both parties ultimately agreeing on just over 400 cars being produced.
Beset with issues from the start, six years later — only 130 of the cars have been delivered and deadlines have been missed.
Before the directors voted, MBTA Deputy General Manager Jeff Gonneville went before the board to outline the problems CRRC has faced.
“The manufacturing process in Springfield has had a number of issues. First, initial startup issues, as it relates to tooling, manufacturing processes, staffing, staff training, and then throughout the production process, issues such as materials, management, and staff turnover,” Gonneville said.
The pandemic caused extensive issues for the manufacturer, not only in Springfield, but also a full plant shutdown in China and other serious issues for CRRC’s sub-manufacturers.
Other problems have included issues with the cars delivered so far, requiring re-designs and additional work. All the while, the MBTA continues to operate aging fleets of cars, including some that entered service in 1969.
Now, Gonneville and CRRC’s leadership say there is a path toward having all 404 promised cars delivered by 2027, but it would call for a renegotiated contract and new funding to meet costs that have only risen over the past decade.
Speaking through an interpreter, President and Chairman of CRRC MA Corporation Wang Zhaofu reaffirmed his company’s commitment to Springfield, as well as a need to reorganize and make changes at the facility in order to enhance production.
“We are proud to call Springfield our home and manufacturing hub, employing hundreds of unionized, skilled workers. We remain committed to job retention and growth at our manufacturing facility,” he said.
The board of directors ultimately voted unanimously on the new aid, as well as a reduction of penalty fees CRRC has been accumulating for its delays – around $90 million.
One board member, Framingham Mayor Charlie Sisitsky, remarked before voting that there wasn't much choice, and that the MBTA is in dire need of new vehicles.
"It's unfortunate that we're in this position, but we've heard a number of reasons why this happened,” the mayor said. “The alternative is to either find another manufacturer or start all over again, and we need these cars as soon as possible.”
In a statement after the board’s approval, Massachusetts Democrat Richard Neal of the 1st House district approved of the MBTA’s efforts, saying it helps ensure several hundred union jobs remain in the area.
He said, in-part:
“I applaud the MBTA and General Manager Phil Eng for putting forth a plan that will deliver on all fronts for all of Massachusetts - completing manufacturing of the remaining Red and Orange Line cars, while protecting the 400 union jobs at CRRC’s manufacturing plant in Springfield.”
The facility in Springfield also has contracts with Philadelphia and Los Angeles - both of which also involved missed deadlines, Gonneville said when asked by the board.
He added that officials in L.A. have previously given extensions to CRRC, while discussions with Philadelphia have been ongoing.
