Bombardier has been criticised in Canada and abroad over the subsidies it receives from various levels of government. They have been described as beneficiaries of
corporate welfare and accused of violating
free trade agreements, especially by
Brazil. Canada and Bombardier have countered by citing Brazil's direct and indirect subsidies to
Embraer, its own major aircraft manufacturer and one of Bombardier's principal competitors in the
regional jet market.
The government of Canada provided a large interest rate subsidy for the financing that made possible Bombardier's sale of subway trains to the
New York City Subway. Some Canadians object to such large sums of money being given to a private for-profit company, but the government had argued that the subsidies create many jobs. Recently, Bombardier initiated an engineering design agreement with an
Indian company which subsidy critics argue may result in a loss of jobs in Canada[
citation needed].
Bombardier's reputation has been tarnished in the western
United States by its association with the privately-funded
Las Vegas Monorail system, which has been operational since
December 24,
2004 but was plagued by delays due to mechanical problems. The system reportedly lost
US$85,000 per day during a four-month closure[
citation needed].
Bombardier's reputation has been further tarnished in the eastern
United States for shoddy workmanship in the manufacturing of the high speed trainset for
Amtrak. The high speed fleet has been taken out of service twice by the
FRA for
safety-critical defects due to poor manufacturing and design. Also the design has undergone over a thousand modifications since coming into service[
citation needed].
Recently, some human rights and Tibet support groups in
Canada, the
U.K., and the U.S. have put pressure on Bombardier over its sale of passenger carriages to the
People's Republic of China for projects including the controversial
Qingzang railway line into
Tibet.
[
edit] Corporate governance