In the late 1980s Bombardier Transportation gained a manufacturing presence in Europe with the acquisition of a 45% share in BN Constructions Ferroviaires et Métalliques[8] (whose principal facility was in Bruges, Belgium) in 1986.

[8] Bombardier Transportation had become by that time the leading North American producer of rail equipment which had sold 825 subway cars to New York City in the 1970s and 1980s.

That same year in Europe, the company established its Bombardier Eurorail division consisting of ANF, BN, BWS (the former assets of Lohner), and the English bodyshell maker Prorail, which it had purchased in 1990.

[20] DaimlerChrysler agreed in August 2000 to sell Adtranz for US$711 million (equivalent to US$1.258 billion in 2023), a price considered to be low by industry analysts.

[25][26] After the purchase, Bombardier Transportation moved its head office to Europe, while keeping a few plants in the US and Canada for the smaller North American market.

Bombardier's aviation division racked up billions of dollars in debt developing the CSeries airliner and the Global 7000 business jet.

Each of these contracts was valued between 600 million to 1.8 billion dollars, but each called for highly specialized, one-of-kind equipment, and many also included late-delivery penalties.

[42] The sale would generate money needed to continue the financing of the troubled CSeries jet,[43][44] and Transportation division managers said the independence would allow them to better compete with a growing Chinese presence in the European market.

[46] However, before the IPO could be floated, the Caisse de dépôt et placement du Québec (CDPQ) stepped in and agreed to give Bombardier a US$1.5 billion infusion of cash.

Over the next few years, Bombardier worked to correct issues with the cars it agreed to build in the earlier half of the decade, and simplify production though more selective bidding, greater standardization and centralized procurement.

By 2018, Bombardier slipped to become the 3rd largest rail-equipment manufacturer in the Western World and fourth globally, eclipsed by CRRC, Siemens and Alstom.

V/Line VLocity at Southern Cross Station in Melbourne, AustraliaBombardier also supplied propulsion units, train-control systems, bogies, and other parts, and maintained train fleets.

Lutz Bertling, head of Bombardier's transportation division at the time, confirmed the two firms had come to an agreement, saying: "The settlement is a positive signal for our future cooperation.

"[81] In January 2015, the Canadian Broadcasting Corporation (CBC) reported[82][83][84] that South Korea's Special Investigation Unit for anti-corruption produced a report accusing Bombardier Transportation of corruption in the pursuit of the 2004 contract to build an 18 km (11 mi) elevated Light Rapid Transit (LRT) rail system called the Everline connecting the Giheung Station on the Bundang (Yellow Line) of the Seoul Metropolitan Subway system to a large amusement park named Everland, via Yongin, the 12th largest city in South Korea, about 30 km (19 mi) from central Seoul.

The investigation report alleges that Bombardier provided gifts and trips to Canada for civil servants and politicians involved in the contract decision, which was based on revenue expected from an inflated estimate of 180,000 passengers per day using the service.

[85] The system remained dormant until service began in 2013[86] while the line owner successfully negotiated with the city of Yongin a minimum revenue guarantee of 29.5 billion KRW[87] per year regardless of passenger load.

A reason suggested for this is the fare of 1100 KRW (about US$1 in 2015); it is impossible to pay for Everline trips via a transfer surcharge on a connecting subway ticket.

A lawyer who filed legal action on behalf of the citizens of Yongin is reported to have provided details about Bombardier's pursuit of the contract.

[90][91] On 28 October 2015, the TTC board voted in favour of a lawsuit against Bombardier "for at least $50 million to recoup lost costs", according to Chair Josh Colle, because of the company's failure to deliver the additional new streetcars.