A Japanese rail-car maker with a manufacturing plant in Rochelle has lost a lucrative contract to build high-speed Amtrak passenger trains after years of safety problems, technical failures and layoffs.
Nippon Sharyo lost the contract from the California Department of Transportation, originally valued at $352 million, to Sumitomo Corporation of Americas and Siemens, the department said.
Although led by California, the contract involved the participation of multiple states, which were able to acquire modern high-speed rail cars at a lower price by banding together.
The original contract was announced in November 2012 by Illinois Gov. Pat Quinn and called for the...