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| Siemens pulls out of race for £1bn London Crossrail carriages contract | Siemens pulls out of race for £1bn London Crossrail carriages contract |
| (3 months later) | |
| The German engineering group Siemens is pulling out of the race to build carriages for the London Crossrail project in a boost to two rival bids that hope to construct the £1bn order in the UK. | The German engineering group Siemens is pulling out of the race to build carriages for the London Crossrail project in a boost to two rival bids that hope to construct the £1bn order in the UK. |
| The company had been favourite to win the rolling-stock contract and its withdrawal is a major boost to Bombardier and Hitachi, who are expected to build the trains in Britain if they win. Siemens had already pledged to build the trains in Germany. | The company had been favourite to win the rolling-stock contract and its withdrawal is a major boost to Bombardier and Hitachi, who are expected to build the trains in Britain if they win. Siemens had already pledged to build the trains in Germany. |
| Winning the Crossrail contract is seen as make or break for Bombardier, which runs the UK's last train-making factory in Derby, employing 1,600 people. | Winning the Crossrail contract is seen as make or break for Bombardier, which runs the UK's last train-making factory in Derby, employing 1,600 people. |
| Bombardier cut 1,000 jobs in 2011 after it was denied a £1.4bn Thameslink contract by a rival bid from Siemens – a deal that was confirmed last week. Unions and local MPs have been urging ministers not to repeat this decision to safeguard jobs at the Derby factory. Japan's Hitachi is building a plant in Newton Aycliffe, County Durham, to manufacture the next generation of intercity trains. | Bombardier cut 1,000 jobs in 2011 after it was denied a £1.4bn Thameslink contract by a rival bid from Siemens – a deal that was confirmed last week. Unions and local MPs have been urging ministers not to repeat this decision to safeguard jobs at the Derby factory. Japan's Hitachi is building a plant in Newton Aycliffe, County Durham, to manufacture the next generation of intercity trains. |
| Siemens's Thameslink victory played a part in its decision to pull out of the Crossrail competition, according to the company. | Siemens's Thameslink victory played a part in its decision to pull out of the Crossrail competition, according to the company. |
| "Crossrail is a very large project and since first undertaking our initial assessment of capacity and deliverability, Siemens has won multiple additional orders," a company statement said. "To pursue another project of this scale could impact our ability to deliver our current customer commitments." | "Crossrail is a very large project and since first undertaking our initial assessment of capacity and deliverability, Siemens has won multiple additional orders," a company statement said. "To pursue another project of this scale could impact our ability to deliver our current customer commitments." |
| The German company insisted the Crossrail decision was not a result of political pressure and said it had no complaints about the bid process, which had been "fair and diligent". | The German company insisted the Crossrail decision was not a result of political pressure and said it had no complaints about the bid process, which had been "fair and diligent". |
| Siemens will have 2,800 carriages running on British railways once its new model Desiro City trains come into service for Thameslink in early 2016, compared to 1,500 carriages across 10 train companies today. Earlier this year Siemens announced delays to the delivery of a €700m (£602m) order for Eurostar. The majority of the 10 high-speed trains will be delivered in 2015, several months later than originally planned. | Siemens will have 2,800 carriages running on British railways once its new model Desiro City trains come into service for Thameslink in early 2016, compared to 1,500 carriages across 10 train companies today. Earlier this year Siemens announced delays to the delivery of a €700m (£602m) order for Eurostar. The majority of the 10 high-speed trains will be delivered in 2015, several months later than originally planned. |
| The 73-mile Crossrail link will join Heathrow airport to Canary Wharf and is due for completion in 2018. A final decision on who will provide the 600 carriages is expected in mid-2014. | The 73-mile Crossrail link will join Heathrow airport to Canary Wharf and is due for completion in 2018. A final decision on who will provide the 600 carriages is expected in mid-2014. |
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