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Time - Man of the Year
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Time_Man_of_the_Year_Compact_Publishing_3YX-Disc-1_Compact_Publishing_1993.iso
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10199915.000
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1993-04-08
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THE WEEK, Page 22BUSINESSIf at First You Don't Succeed, Buy Again
After a rebuff, Sumitomo and Los Angeles strike a rail-car deal
Maybe it wasn't such a bad deal after all. Last December,
Los Angeles awarded Japan's Sumitomo Corp. a contract to build
41 cars for its light-rail system. A month later, the company
was derailed from the $121 million contract when, in a fit of
buy-American sentiment stirred in part by George Bush's visit
to Japan, the Los Angeles County Transportation Commission
canceled the deal and said it would rewrite the specifications
to attract a U.S. company. Last week the commission revealed the
firm selected to build 15 of the new cars: Sumitomo Corp.
After considerable searching, the panel admitted, it had
found no American contractor that would agree to accept the
revised specs. To save face for Angelenos, the new contract
includes a Sumitomo commitment to ship cars from its Nagoya
factory to Los Angeles in partly completed condition -- thus
creating 79 assembly jobs in Los Angeles -- and to spend 60% of
the contract's value in the U.S.