The vehicle is based on Bombardier's standardized Flexity Outlook product, which is also used in cities like Brussels, Marseille, and Geneva, but tailored to Toronto's needs.

Specific design requirements included use of TTC's unique broad track gauge rather than standard gauge, the ability to handle tight turning radii of 11 metres (36 ft) and single-point switches, climb the city's steep hills and valleys, clearance, and ability to upgrade from trolley poles to a more modern pantograph current collection system.

[6] An extendable loading ramp for riders using wheelchairs, strollers or other mobility devices is located at the second set of doors of the vehicle.

Passengers paying with exact cash in coins can use one of the two onboard fare vending machines (FVM) located at the middle double doors and obtain a single-ride paper ticket, which acts as POP and to use as a transfer on other connecting TTC routes.

The TTC is also developing a wheel-mounted noise damping ring to further reduce high-pitch squeal, and hopes to begin prototype testing in the fourth quarter of 2017.

The TTC is working to install improved lubrication system units at streetcar loops that are activated by the passage of a Flexity Outlook vehicle.

The fleet replacing the CLRVs and ALRVs was to remain single-ended with doors on the right only, and to retain current collection by trolley pole, but the TTC also requested that provision be made for future conversion to pantograph, and that the option of buying a bi-directional version of the streetcar for new lines be available.

Bombardier, Siemens, AnsaldoBreda, Mytram, Vossloh Kiepe, and Kinki Sharyo all expressed interest in competing to supply the new streetcars, but most dropped out of the bidding at various stages.

[30][31][32] The first vehicle arrived in Toronto on September 25, 2012, by rail from the Thunder Bay plant to Canadian Pacific Railway's Lambton Yard near Runnymede Road and St. Clair Avenue West.

[7] According to CEO Andy Byford in 2015, the first Flexity streetcars were so poorly manufactured that the TTC would not accept them for fear they would break down on bumpy city streets.

To address these problems, Bombardier retooled its Mexican operation in Ciudad Sahagún, Hidalgo (a former Concarril facility) and implemented new quality-assurance processes at Thunder Bay.

The TTC had hoped to start with six Flexity Outlook vehicles in service but had to settle for just two because of production problems including the Bombardier labour strike.

TTC CEO Andy Byford had warned Bombardier that he would insist that they meet the final schedule of all vehicles in time for new streetcars to replace the old fleet by 2019, or he would impose penalty clauses in the delivery contract.

[51] By mid-October 2015, Bombardier admitted it had another production problem at its Ciudad Sahagún plant in Mexico, the same one responsible for faulty under-frames and sides on the new streetcars.

Bombardier says it will use a second manufacturing plant in La Pocatière, Quebec, along with an additional assembly line in an unspecified location to help with production being completed in Thunder Bay.

[54] On September 28, 2016, TTC CEO Andy Byford said that there were 22 of the new streetcars in operation, and expressed doubts that Bombardier would be able to meet its promise of 30 total deliveries by the end of 2016.

[55] With the TTC's permission, Bombardier shipped the last four Flexity Outlook streetcars of 2016 to the Hillcrest Complex in an almost-finished state and completed them at the Leslie Barns.

[65] Bombardier had invested $20 million to increase production capacity and began to produce Flexity streetcars at its Kingston facility in December 2018 (three months later than planned) as well as at Thunder Bay.

The difficulties were adapting the vehicle to the non-standard track gauge, grades and sharp curves of the system, and replacing the type of steel used in order to resist salt corrosion.

[52][75] On October 28, 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 Flexity streetcars.

In a statement late that afternoon, Bombardier responded that it would not comment on the TTC's plan and would not offer "any speculation on potential impacts" on their operations.

In September 2016, the TTC Board rejected the recommendation citing the Bombardier Flexity delivery delays, the extra cost of keeping the old fleet running, and the possibility of buying buses at a lower price with federal funding.

[82][83] In January 2018, the TTC Corporate Plan noted that 150 additional streetcars could be purchased by 2022 to increase system capacity, as well as to serve extensions along the city waterfront.

Flexity Outlook streetcars draw more current than the older CLRV and ALRV fleet, and this also shortened the life of the carbon insert.

On November 28 and 29, 2019, the TTC ran test vehicles along the line with cameras pointed at the metal bar and determined that a 15-centimetre (6 in) piece of broken rail was the cause of the problem.

[114][115][116] In December 2019, the Canadian Light Rail Vehicle was retired from service,[117][118] with the last of the 204 Flexity streetcars ordered delivered in January 2020.

To compensate for the lower frequency, there would be less crowding on the longer Flexity Outlook cars, and running fewer streetcars was projected to save the TTC $45 million per year in labour costs.

[66] In February 2020, Bombardier informed the TTC that falling behind in maintaining its Flexity fleet could cause premature wear and higher rates of breakdown, and impact warranty coverage.

The TTC expected to resume the program in April 2020 amid the COVID-19 pandemic and the resultant reduction in ridership as well as to clear up a 25-car backlog within six months.

The maintenance program applies to Flexity Outlook streetcars that have been in service for two years and involves inspecting components such as gear box, driver controller, power unit, and doors.