French train maker drops out of Crossrail bidding

Alstom, maker of Virgin's Pendolino, withdraws from process
Hopes raised that UK-based manufacturer will win contract
Tendering process tweaked after Derby job losses

The French manufacturer of the Virgin Trains Pendolino fleet has pulled out of the bidding to make carriages for the 16bn Crossrail project.

Alstom announced its withdrawal after Crossrail raised hopes that a UK-based manufacturer will secure the next major British trains contract by confirming that the outcome of a government procurement review will be included in the tender. The review was set up after Siemens of Germany was selected as preferred bidder for the 1.4bn Thameslink contract, knocking Bombardier's Derby-based factory into second place and precipitating the loss of more than 1,400 jobs.

An Alstom spokesperson said: "After analysis of the requirements for the new rolling stock for the Crossrail project, Alstom has decided to withdraw from the competition." The withdrawal leaves a four-strong shortlist for the contract, comprised of Canadian engineering giant Bombardier, Spanish firm CAF, Hitachi and Siemens.

However, the winner of the Thameslink contract for 1,200 carriages is considered by industry insiders to be the favourite for Crossrail because of the expected similarities between the trains. Alstom bolstered that view in its statement, in which it said Crossrail was seeking lower spending on developing a new train for the route, which will run from west London via Heathrow airport to the east of the capital via Canary Wharf. "We consider that the necessary adaptation of our existing products in service in other countries is incompatible with both Alstom's strategy for profitable growth and Crossrail's requirement for minimal development costs," said Alstom.

Under changes to the Crossrail contract announced on Tuesday morning, the government-ba! cked pro ject said the award of the contract would be pushed back from late 2013 to 2014 in order to save costs, while also allowing the procurement review to be factored in. David Cameron and the Department for Transport are adamant that they will not install Bombardier as preferred bidder for Thameslink, arguing that it would trigger a legal dispute and cause delays to the delivery of the trains.

Maria Eagle, the shadow transport secretary, said: "The truth is that the delay to the project has nothing to do with improving procurement at all. If ministers are now saying it's possible to review the Crossrail contract, they must explain why they have cost British jobs by refusing to do the same for the new Thameslink trains as Labour has repeatedly demanded."

Bob Crow, general secretary of the RMT trade union, said the Crossrail contract must follow France and Germany's example and protect UK jobs. "We want the government to send out a clear message to bidders for the Crossrail fleet that this contract will be played under the same rules that apply in France and Germany where protection of domestic jobs and industries is a core factor in the procurement process. If that forces companies like Alstom out of the game then so be it."


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