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Adtranz was a multi-national rail transportation equipment manufacturer with facilities concentrated in Europe and the US. The company, legally known as ABB Daimler-Benz Transportation, was created in 1996 as a joint venture between ABB and Daimler-Benz to combine their rail equipment manufacturing operations. In 1999, DaimlerChrysler (successor to Daimler-Benz) bought ABB's shares and changed the company's official name to DaimlerChrysler Rail Systems. The company was acquired by Bombardier Inc in 2001, which merged it into its Bombardier Transportation division, which became the largest rail equipment manufacturer in the world at the time, and was ultimately acquired by Alstom in 2021.
Adtranz manufactured locomotives, high-speed, regional, metro and underground passenger trains, trams and people movers as well as freight wagons. Non-rolling stock businesses included railway electrification and signalling infrastructure.
The company's manufacturing facilities and product lines were rationalised, including a standard form of car body; after 18 months manufacturing costs had been reduced by 30%, revenues and orders also rose from 1996 to 1997. However the company continued to lose money, $111 million in 1997. Polish manufacturer Pafawag was acquired in 1997 and the facility modernised, controlling interests in MÁV Dunakeszi,See also Bombardier MÁV Kft. (in Hungarian) Hungary and Schindler Waggon Switzerland were also acquired by the end of 1997. manufactured by Adtranz]]In March 1998 Adtranz presented a set of new product brands for modular product platforms, with designs that can be adapted for the specific requirements of different customers: the Adtranz Innovia guided transport vehicle, the Incentro low floor tram, the Itino diesel multiple unit, the Crusaris medium-high speed train (based on the GMB Class 71 flytoget trains), and the Alstom Traxx electric locomotive.Derived from the DBAG Class 145 locomotives. See also section: DBAG Class 145 family, Adtranz Octeon platform in Alstom Traxx A new diesel locomotive design with engine and electrical traction system provided by General Electric was introduced, named "Blue Tiger". Adtranz intended to consolidate its product range around these families once on-going deliveries are finished.
Adtranz continued to make an operating loss in 1998, attributed to earlier contracts with underestimated costs, as well as technical problems with products. The same year brought an order for 400 locomotives for Deutsche Bahn, as well as the acquisition of Swiss Locomotive and Machine Works.
ABB sold its 50% stake in Adtranz to DaimlerChrysler in January 1999 for $472 million, taking up a previous agreement made on the formation of the joint venture whereby DaimlerChrysler was required to purchase ABB's stake.DaimlerBenz Annual Report 1996, p.60
Adtranz finally achieved profitability in 2000, as DaimlerChrysler prepared to sell off Adtranz. The Greenbrier Companies acquired the freight wagon manufacturing business in January 2000. The overhead electrification systems installations business was sold to Balfour Beatty in late 2000 for €153 million. No buyer was found for the railway signalling division.
The remaining assets of Adtranz were sold to Bombardier Inc, in a $711 million deal announced in August 2000, a price considered to be low by industry analysts."Bombardier agrees to buy Adtranz" Railway Gazette International September 2000 page 601 The sale was cleared by the European Union in April 2001 on the condition that Bombardier would license or sell the Adtranz regional train and tram products to Stadler Rail in the German market, due to the large market share of Bombardier and Adtranz in the country. The deal would make Stadler a viable independent company providing competition to Bombardier. The takeover came into legal effect on 1 May 2001 with a final price of $725 million and ADtranz was folded into the Bombardier Transportation division.
Within months of the sale, Bombardier said that it was misled about the financial situation of Adtranz. Bombardier sued DaimlerChrysler for providing misleading financial information. The companies settled in September 2004 with DaimlerChrysler agreeing to refund $209 million, making the final sale price for Adtranz just $516 million.
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