The government is going to be stepping in and helping out troubled Derby train maker Bombardier. They have recently considered closing their Derby plant after losing an important contract worth £1.4 billion for Thameslink trains.
The government has decided to put up £80 million subsidizing Bombardier and making it easier for them to win a £250 million Southern Railway contract that they are currently bidding on.
The Derby factory is very important to the government, as they are the last train-making plant left in Britain. Their last contract runs out in 2014 and they have expressed frustration that they’ll need to close if other contracts don’t come their way quickly. Now trying to revive manufacturing in Britain, the government certainly doesn’t want Bombardier to close.
As a result, the government is also working on new procurement rules to help British bidders to have more change of winning contracts. The Bombardier company has explained that they can only stay open if they win both the Southern order and a £120 million CrossCountry contract they are currently bidding on.