Skip to: Content
Skip to: Site Navigation
Skip to: Search


L.A. COUNTY CANCELS METRO RAIL CONTRACT WITH JAPANESE FIRM

By United Press International / January 24, 1992



LOS ANGELES

County transportation officials, capitulating to a recession-weary public, unanimously agreed to cancel a $121 million contract for the Japanese firm, Sumitomo Corporation of America, to build 41 rail cars for a mass-transit system.

Skip to next paragraph

But the County Transportation Commission delayed opening the contract for rebidding.

Wednesday's vote was prompted by public outcry over last month's decision to award Sumitomo the contract over a Boise, Idaho, firm, Morrison-Knudsen, that pledged to do the job for $5 million less and hire nearly 2,000 more US workers.

Despite their vote, commissioners chastised some politicians for "whipping up" latent anti-Japanese sentiment in order to gain political clout.

Sumitomo made an attempt to save its contract, notifying the panel it had begun negotiations with General Electric to work as a major subcontractor.

A statement said the firm was disappointed that the contract was canceled for "non-business-related reasons."