Bombardier Transportation divests activities performed in Huehuetoca, Mexico
Bombardier Transportation has signed an asset sale and purchase agreement to sell the activities of Electrical Wiring Interconnection Systems (EWIS) performed at Bombardier Transportation’s manufacturing site in Huehuetoca, Mexico (BT Ensambles México) to Motherson Sumi Systems Limited (MSSL). The sale will be conducted via, among others, MSSL’s Mexican subsidiary, Motherson Rolling Stocks, S. de R.L. de C.V. (MRS), which is part of the Motherson Rolling Stock Division, that designs and manufactures electrical cabinets, power packs and electrical distribution systems for leading rolling stock suppliers.
Bombardier Transportation’s manufacturing site in Huehuetoca, Mexico.
- Strategic agreement signed with Motherson Sumi Systems Limited
- The decision enhances Bombardier’s strategy of developing preferred supplier partnerships to improve time to market, delivery and cost structure
"The global rail market is extremely dynamic and has become increasingly competitive. Bombardier Transportation aims to enhance its adaptability and agility to meet changing market conditions, in order to continue to increase its competitiveness and improve its global footprint."
Jim Vounassis, Chief Operating Officer, Bombardier Transportation
“The transaction is beneficial to both parties, since Bombardier Transportation has been seeking to establish a long-term supplier partnership for electrical harnesses and assemblies in the Americas region and MRS is an excellent partner for this,” added, Elliot G. (Lee) Sander, President, Americas Region, Bombardier Transportation.
Bombardier Transportation EWIS provides world-class harnesses and electrical assemblies based on standard solutions. MRS will continue manufacturing the same electrical harnesses and assemblies as currently produced at the Huehuetoca site in Mexico.
Both companies are now working to ensure a smooth transition for employees while maintaining business continuity and delivering on all customer commitments. The transaction, consisting in an asset transfer, should be completed within the coming months, provided that certain closing conditions are fulfilled.
www.bombardier.com
