[THE INVESTOR] Trains produced by
Hyundai Rotem have been decommissioned in the US over defects in the suspension. Hyundai Rotem is subsidiary of
Hyundai Motor Group that specializes in railroad vehicles and defense equipment.
According to the company on July 7, 120 trains supplied to Southeastern Pennsylvania Transportation Authority were decommissioned on July 1 following the discovery of problems in suspension parts.
The trains were supplied to SEPTA in a US$ 270 million contract signed in 2006. The trains were commissioned in 2010.
An express train made by Hyundai Rotem
According to reports, Hyundai Rotem officials are now inspecting the rolling stock, and discussions are being held on how to address the issue.
Hyundai Rotem said that the parts in question were supplied by a US-based company, and that trains running in South Korea and other parts of the US will not develop similar problems as different parts were used.
By Choi He-suk (
cheesuk@heraldcorp.com)