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“This decision comes as a result of all funding partners aligning on our shared goal of supporting both Canadian workers with good manufacturing jobs and 色色啦 transit riders with more reliable trains,” Chow said in her letter.

Chow also wrote that all three levels had agreed to “equally share” the final cost of the single-sourced contract, “with cost to be validated through a third-party assessment.”

The city had been called on by higher levels of government to ensure the $2.3 billion for new subway cars are spent in Canada amid U.S. President Donald Trump鈥檚 tariffs on Canada.

The 55 new subway cars are meant to replace the current cars, which are expected to reach the end of their 30-year service life in 2026.

Line 2 has 400,000 daily boardings. The risk of running trains past their service life was underscored when the Scarborough RT derailed in September 2023, with then-TTC CEO Rick Leary warning of similar problems if the Line 2 cars were not replaced.

The new subway cars aren鈥檛 expected to begin rolling out until 2030, and TTC officials had previously said they would undertake a 鈥渓ight overhaul鈥� of the current Line 2 cars to extend their service life in the interim.

The cost of the new subway cars required the city, the province and the federal government to each contribute a third of the expected $2.3-billion cost. The province鈥檚 third was secured as part of the Ford government鈥檚 鈥渘ew deal鈥� with 色色啦 and the federal government sealed its funding in an聽announcement on Nov. 29, 2024.

The Thunder Bay factory, which was owned by Bombardier until Alstom took over the company鈥檚 rail business in 2021, has filled previous orders for TTC subways and streetcars. Bombardier’s fulfilment of the city’s contract for streetcars drew scrutiny in 2017 for . In 2022, Alstom lost out on a major contract for new trains for the province鈥檚 Ontario Line project.