Subsequent Event

12 Months Ended

Dec. 31, 2012

Subsequent Events [Abstract]

Subsequent Event

Note 22 – Subsequent Event

On February 19, 2013, the Company, through its wholly owned subsidiary, FreightCar Alabama, LLC ("FCAL"), entered into a sublease (the "Sublease") with Navistar, Inc. ("Navistar"), as sublandlord, for space at a production facility located in Cherokee, Alabama (the "Subleased Premises"). The Subleased Premises are a portion of the approximately 700 acres of land and an approximately 2,150,000-square foot facility that Navistar leases from Teachers' Retirement Systems of Alabama and Employees' Retirement System of Alabama, acting together as landlord.

Pursuant to the Sublease, approximately 543,399 square feet of the Subleased Premises will be occupied by the Company and will include production lines, sub-assembly areas, storage and fabrication areas and office space. The remaining portion of the facility will be occupied by Navistar. The initial term of the Sublease expires on December 31, 2021 and, at the option of FCAL, is subject to extension for a period of an additional 120 months.

In connection with the Sublease, FCAL also has entered into an asset purchase agreement pursuant to which the Company will purchase from Navistar certain manufacturing equipment located on the premises, a supply agreement pursuant to which Navistar will provide fabrication and production support services to the Company and a services agreement pursuant to which Navistar will provide administrative and other agreed-upon services to the Company.

The Company expects to invest up to $23 million to equip and open the Subleased Premises. The Company expects that the first new railcars manufactured at the Subleased Premises will be delivered in the second half of 2013.