Kawasaki to Build 378 Rail Cars in Yonkers; $1.5 Billion Contract with MTA

Kawasaki will build 378 Rail Cars in Yonkers, after receiving a $1.5 Billion MTA contract. The subway cars will be built at Kawasaki’s existing plant in downtown Yonkers.

“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,” said Mayor Mike Spano said. “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.”

Governor Kathy Hochul announced last week that the MTA Board approved the purchase of 378 new R268 subway cars as part of the Authority’s efforts to modernize its rail fleet. These new R268 subway cars will run on the system’s ‘B’ division and will be designed to similar specs as the R211. The cars will be funded by the MTA’s historic $68 billion 2025-2029 Capital Plan, which was fully funded by Governor Hochul and the State Legislature in the FY26 Enacted Budget.

“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,” Governor Hochul said. “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.”

MTA Chair and CEO Janno Lieber said, “This purchase allows us to replace cars at the end of their useful life before they start breaking down. And by building on the successful procurement of R211 train cars, we were able to save money on nearly 400 modern subway cars.”

The new cars will also support the ongoing conversion of lines to modern Communication-Based Train Control (CBTC) signaling. These signal enhancements will allow the MTA to run more trains more frequently and more reliably, resulting in improved service and less crowded stations and trains. Additionally, CBTC will allow for more accurate real-time train arrival information.

The R268 cars will be delivered by Kawasaki Rail Car, Inc. beginning in Fall 2028. All cars will be delivered by 2030, allowing the MTA to retire the last of its R68 and R68A cars and transition the ‘B’ division to an all modern-technology fleet, with all cars capable of delivering CBTC service. The R268 cars are needed to replace New York City Transit’s aging R68 and R68A cars that currently service the B, D, N, Q, W and Franklin Av Shuttle and are nearing the end of their service life. The new cars will feature modern passenger amenities including pre-installed security cameras in every car, more accessible seating, brighter lights and clearer signage. In addition, these cars will provide dramatic upgrades in reliability and performance compared to the aging cars they are replacing. The cost of the contract is $1.507 billion.

Kawasaki Rail Car, Inc President Yusuke Hirose said, “Governor Hochul and MTA Chair and CEO Janno Lieber remain steadfast in their commitment to modernizing New York City Transit’s rolling stock. 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. 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.”

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