In July 1981, the NYCTA began the bidding process for 325 cars under the R62 contract. Nissho-Iwai American Corp, the parent company of Japanese train car builder Kawasaki Heavy Industries, was the lowest bidder for the initial 325 cars, while American company Budd Company submitted a high bid for the initial contract and a low bid for the rest of the cars. The NYCTA did not want to award the large contract to a single builder, as it did in 1975–1978 with the R46s (which were plagued by mechanical problems and cracks in the chassis).