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Nippon Sharyo says it is committed to new Midwest, California cars

By Kevin P. Keefe | May 18, 2016, Trains News Wire

ROCHELLE, Ill. — Carbuilder Nippon Sharyo, the main contractor for 172 new bilevel passenger cars for Midwest and California service, says it is committed to completing the project at its expanded factory in Rochelle as it contends with engineering issues resulting from a failed September 2015 compression test.

In a statement provided to News Wire, the company also confirms the entire order is likely to be delayed. The company suspended work last fall and furloughed approximately 98 employees.

Last week, Caltrans, the lead agency in the purchasing consortium, said funding for the 130 Midwest cars in the order probably would be lost if the project fails to meet a Sept. 30, 2017, deadline for using up to $551 million in American Recovery and Reinvestment Act stimulus money. The funds would revert back to the U.S. Treasury. The California cars are less dependent on recovery act money.Website Insert Buy American Mandate copy

**** Corridor Capitol the company that owns about 72 old Santa Fe Hi levels is trying to modernize the old cars and sell them to a state rail agency