October 1, 2014
CHICAGO (AP) - The company that makes cars for Japan's bullet train has been picked to build a fleet of next generation passenger cars for rail corridors in the Midwest and California.
Illinois, Michigan, Missouri and California teamed up to buy the 130 bi-level cars at a lower cost.
The cars will be made at a new plant opened up by Nippon-Sharyo's U.S. subsidiary in Rochelle, Ill. It submitted a bid of $352 million with partner Sumitomo Corporation of America.
The agreement was announced late Wednesday. Before it becomes final, a federal audit must verify that all cars will be assembled in the United States and that all major components will be made domestically.
The first new cars are scheduled for delivery in 2015.
Funding comes from Federal Railroad Administration grants.