Prevost Wins Historic $447 Million Contract with New York City MTA

2023-12-19 21:37:39

Coach manufacturer Prevost has just won the largest contract in its history with the Metropolitan Transportation Authority (MTA) of New York City, for the construction of 381 coaches, for an amount of more than $447 million.

The contract provides for a firm order for 250 coaches to be delivered between 2025 and 2026, as well as options to purchase an additional 131 coaches. The model that will be manufactured is the X3-45, which will be used for public transportation between the suburbs.

The production rate in the coming months will increase to four coaches per day at the main Prevost factory in Sainte-Claire. Diane Tremblay

This contract will make it possible to retain and hire nearly 150 new employees in Sainte-Claire, in the Bellechasse region, starting in 2024.

“What better time to make this announcement, a few days before the holidays! We mightn’t dream of a more beautiful gift. A little over a year ago, the folks at Prevost began intense discussions with the MTA, responsible for urban transportation for all of New York City, with the goal of bidding on a major tender. One year later, we are all gathered here to celebrate,” said the president, François Tremblay.

Coaches built in Quebec

This historic contract from the largest public transportation agency in North America is good news for Prevost. One hundred percent of the vehicles will be built in Sainte-Claire, Quebec.

According to Mr. Tremblay, this contract is financed by the State of New York and not the federal government, “which allowed the State of New York to have the vehicles built outside the country”, contrary to the rules provided for in the Buy American Act.

“We even repatriated parts that we subsequently produced in the United States to bring them back to Quebec suppliers. So, this will benefit all of Quebec,” assured the president.

François Tremblay, president of Prevost. Diane Tremblay

Beneficial spin-offs are therefore to be expected for the numerous Quebec suppliers of the company which is part of the Volvo Group. The production rate will be increased over the coming months to produce four coaches per day.

“This is great news for everyone. We are very happy. Every week, we see new people coming to work here. These days, we often hear regarding layoffs elsewhere, in other companies. For us and our families, it’s reassuring,” shared William Gagnon, an employee.

Nearly 150 jobs in different trades will be created by obtaining this contract. 100 percent of manufacturing will be carried out in Quebec. Diane Tremblay

“I am very proud that Prevost is securing a nearly half-billion dollar contract with New York State, the largest in its history. Prevost is a company from the Bellechasse region that has embodied Quebec know-how in public transportation for almost 100 years. “Today’s announcement is excellent news,” added François Legault, Prime Minister of Quebec in a message sent by video.

Several personalities were present Tuesday during the announcement of obtaining a historic contract at Prevost, in Sainte-Claire. Diane Tremblay

Number of employees at Prevost

  • 1704 Canada and United States;
  • In Sainte-Claire alone, there are 1,087 employees, 16% of whom are women;
  • Company founded in 1924 by Eugène Prévost;
  • The X3-45 model is the one that will be produced under this historic contract.

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