Kawasaki Rail Car, Inc., in Yonkers has been awarded a $1.507 billion contract by the Metropolitan Transportation Authority (MTA) to build 378 new rail cars for the New York City subway system. The new model R268 subway cars will be similar in design and specifications to the R211 cars that already have been put into service. The contract also covers items in addition to the rail cars such as spare parts, special tools, diagnostic test equipment, technical documentation and training.
Yonkers Mayor Mike Spano told Westfair’s Westchester County Business Journal, “Kawasaki Rail has long been a cornerstone of Yonkers’ manufacturing strength and innovation, and this new $1.5 billion contract from New York state and the MTA is a testament to their world-class craftsmanship and commitment to excellence. We are proud that the next generation of New York City subway cars will be built right here in Yonkers — by our talented workforce, supporting good jobs and continuing our city’s proud legacy of industrial leadership.”
The new cars will begin to be delivered in the fall of 2028 with all cars delivered by the end of 2030. The MTA says that the new cars will feature pre-installed security cameras in every car, more accessible seating, brighter lights and clearer signage. The new cars are expected to provide dramatic upgrades in reliability and performance compared with the aging cars they are replacing.
“The R268 contract will not only secure employment for hundreds of workers in our Yonkers facility, but also delivers state-of-the-art, high-quality subway cars to NYC riders,” Kawasaki Rail President Yusuke Hirose said. “With this milestone, we will surpass over 4,000 cars produced for New York City Transit and we’re excited to continue building for the city’s future.”
Kawasaki has successfully delivered over 2,900 cars to for the New York subway system since receiving its first contract order in 1982 for model R62 subway cars.
The new contract was awarded to Kawasaki on a no-bid basis. According to an MTA document, Kawasaki’s final negotiated price of $1,507,107,118 was 7.7% or $126.3 million lower than the NYC Transit’s independent estimate of $1,633,394,690. The MTA said that by awarding the contract on a no-bid basis it is able to have the new cars in service and retire the old subway cars about four years sooner than it otherwise would be able to do.
Funding for the new subway cars is contained in the MTA’s $68 billion 2025-2029 Capital Plan, which was part of the state’s Fiscal Year 2026 Enacted Budget.
Gov. Kathy Hochul said, “I promised New Yorkers that we’d make generational investments in the transit system that is the lifeblood of our region, and we’re delivering by purchasing 378 state-of-the-art cars that will keep our city moving for decades to come. These new subway cars will carry billions of riders over their lifetime, connecting the people and places we hold dear with the safety and reliability New Yorkers need and deserve.”
