PANDEMIC PROBLEMS: Kawasaki’s Biggest Customer Says Contracts Could Be In Jeopardy Thus Causing Possible Cuts At The Yonkers Assembly Plant – By Brian Harrod

Kawasaki’s Yonkers facility could soon face cuts, as the company’s “number one customer” is losing hundreds of millions of dollars every week.

The Metropolitan Transportation Authority is responsible for New York’s subway system and its Chairman, Pat Foye, says the MTA is in the red and taking a beating thanks to COVID-19.

In a press release, the MTA said it “is currently experiencing $200 million in revenue losses every week – an unprecedented crisis that eclipses even the Great Depression’s impact on its ridership and finances. These declines, compounded by the loss of state and local taxes and subsidies that support the organization, have left the MTA with a $16 billion projected deficit through 2024.”

In the last eight years, the MTA has spent about a billion dollars on Kawasaki trains, parts and services.

The MTA said it may have to gut its $51.5 billion capital construction plan, putting current and future Kawasaki contracts in jeopardy.

That includes a $3.6 billion contract for up to 1,500 cars. Mass production was set to start in 2021.