Deutsche Bahn Seeks Compensation From Siemens, New Suppliers

By Beate Preuschoff

German train operator Deutsche Bahn AG Thursday said it's seeking compensation from German industrial conglomerate Siemens AG (SI) over a further delay to the delivery of 16 long-distance trains, and will diversify its train suppliers.

Deutsche Bahn intends to "claim its rights," board member Volker Kefer told the Wall Street Journal Deutschland, but didn't provide details.

"We are interested in settling the issue directly with Siemens, not in court," Mr. Kefer added.

The move comes after Siemens Wednesday again pushed back delivery of 16 intercity-express trains, which have already been paid for, due to technical issues that occurred during tests in recent weeks.

Deutsche Bahn is also looking for additional suppliers to avoid delivery delays in the future, even though this is difficult to do in the high-speed segment, he said.

"In order to ensure a resilient train schedule we need more stability from the supplier industry," Mr. Kefer said.

Deutsche Bahn had hoped to include the trains in its reserve fleet this winter in case of harsh weather, but now delays and cancellations are likely, according to Berthold Huber, chief executive of DB Fernverkehr, Deutsche Bahn's long-distance passenger train division.

"Our customers feel let down by Siemens," he said, adding "you have to keep in mind that we ordered the trains in 2008 and were promised delivery last December."

Siemens apologized for the delays, saying the company is working closely with Deutsche Bahn to find a solution to the problem.

The delays have already had a financial impact on Siemens, which booked nearly 70 million euros ($89.8 million) in charges in the first quarter of fiscal 2012 due to delays by suppliers.

A Siemens spokesman declined to comment on whether the company will have to book charges from the most recent delay.

Write to Beate Preuschoff at [e-mail]

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