Stadler Rail can firmly schedule the second major order within a few months. Even if the trains won’t be delivered for a few years, the orders are already a blessing.
Stadler regional train in Berlin: The international success also speaks for the Swiss.
The champagne has been cold for over six months, now the corks can pop in Bussnang. The Federal Administrative Court has decided that Stadler Rail is allowed to deliver 286 “Flirt” trains to a group consisting of SBB, Eastern Switzerland’s Thurbo and Regionalps from Valais – a major order worth 2 billion francs. The order can grow later, to a total of 510 trains for more than 3 billion francs.
The court dismissed a complaint about procedural errors that the defeated Alstom had made after the award of the contract in October 2021. Competitors like to raise such objections in order to find out details about the winner’s offer. Understandable, because Stadler’s offers are good, as are the trains.
The order book of company boss Peter Spuhler is now very well filled. At the beginning of the year, the rail vehicle manufacturer already received a record order for 246 to 504 trams for 1.7 to 4 billion euros, tendered jointly by six railway companies from Germany and Austria.
The flood of orders not only provides planning security, it also pays off immediately: train manufacturers receive advance payments, which can amount to 10 to 30 percent in the first project phase. That fills the till long before the vehicles go into service. The popular “Flirt” trains for the Swiss order will not be delivered until 2026.
Especially in the current environment, this support for the cash flow should also be welcome at Stadler Rail. Raw materials and components, which the company buys in large numbers, are becoming increasingly scarce and expensive. Although the contracts with rail operators leave room for price adjustments, many transport companies are not on a bed of roses financially – especially after the pandemic. A company is all the more stable if, like Stadler, it can attract a large number of buyers from Germany and abroad.
You can refer to Benjamin Triebe, Editor for Business and Business Twitter follow.