Yonkers’ Kawasaki Lands $1.5 Billion Deal to Build New MTA Subway Cars

The Metropolitan Transportation Authority (MTA) has awarded Kawasaki Rail Car, Inc. a $1.5 billion contract to produce 378 new subway cars for New York City, securing the company’s position as a leading rail manufacturer in the region.

The new fleet, designated as model R268, will share many design elements with the R211 cars currently rolling out across the subway system. In addition to the cars themselves, the agreement includes spare parts, specialized tools, testing equipment, technical manuals, and staff training.

Production is scheduled to begin soon, with the first deliveries expected in fall 2028 and completion by 2030. The cars will feature enhanced accessibility, improved lighting, clearer digital signage, and built-in security cameras in every car. According to the MTA, the new fleet will significantly improve reliability and performance compared with older models.

“Kawasaki Rail has long been a cornerstone of Yonkers’ manufacturing strength and innovation,” said Yonkers Mayor Mike Spano. “This major contract from New York State and the MTA is a testament to their craftsmanship and commitment to excellence. We’re proud that the next generation of subway cars will be built right here by our local workforce.”

Kawasaki Rail President Yusuke Hirose praised the agreement, noting that it will sustain hundreds of jobs in Yonkers. “This milestone will bring us past 4,000 cars produced for New York City Transit,” he said. “We’re honored to continue supporting the city’s future with high-quality, state-of-the-art trains.”

Kawasaki’s relationship with the MTA dates back to 1982, when it delivered its first order of R62 subway cars. Since then, the company has manufactured nearly 3,000 cars for the New York system.

The MTA selected Kawasaki for this latest project through a no-bid process, citing the need to fast-track delivery. The final contract price—$1.507 billion—came in roughly 7.7% below the agency’s independent cost estimate, saving more than $126 million. Officials said the decision would enable the MTA to replace outdated trains roughly four years earlier than initially planned.

Funding for the R268 cars is part of the MTA’s $68 billion 2025–2029 Capital Plan, which was approved under New York State’s Fiscal Year 2026 budget.

Governor Kathy Hochul highlighted the investment as a key step in strengthening public transit: “We’re delivering on our promise to modernize the system that keeps our region moving,” she said. “These new subway cars will serve billions of riders over their lifetime—connecting communities safely, reliably, and efficiently for decades to come.”