The Washington Post has a story on Oregon’s United Streetcar company, which is supposedly geared up to manufacture 24 streetcars a year but has only managed to sell 18 and delivered all of them late. The story comes complete with photos of federal officials like Tim Geithner wearing ill-fitting sack suits like soviet commissars as they inspect the heavily subsidized factory.
For the Post, the story is not so much that the streetcars were delivered late, or that they were ineptly built, or that they cost $4 million while the Czech streetcars that they copied only cost $1.9 million. Although the article alludes to these problems, what appears to upset the Post the most is that giving millions of dollars in subsidies to an Oregon company that never built a transit vehicle in its life didn’t miraculously create a manufacturing powerhouse that is exporting streetcars all over the world. For some reason, other countries don’t want to pay twice as much for streetcars that are delivered late and fail to live up to promised specifications.
United Streetcar only managed to sell streetcars to three cities–Portland, Tucson, and Washington, DC–and they all signed contracts before the company developed its track record of late deliveries. Given that record, it isn’t surprising that other cities that are thinking about streetcars aren’t planning to buy Oregon.
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