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From the pages of London ONT newspaper A U.S. investment group with $1 billion US is in "serious discussions" to buy General Motors Electro-Motive Division, including its 580-job plant in London. The possible sale of the locomotive builder to an investment group, not a manufacturer, has sparked worry among workers and prompted one city councillor to ask for quick action from city hall. "I want the economic development people to move on this and not wait to find out in five or six days, it's gone," Coun. Bernie MacDonald said. After calls from anxious workers and business leaders, MacDonald urged the mayor and London Economic Development Corp. last night to investigate the possible sale and meet new owners to ensure jobs stay in London. "We will certainly do our part for that," Mayor Anne Marie DeCicco promised. Berkshire Partners of Boston and Greenbrier Equity Group are the two companies involved in negotiations, The Free Press has learned. "There are serious discussions under way," said a spokesperson for investors. Berkshire and Greenbrier have more than $1 billion US available to invest in transportation-related companies, a Berkshire website says. Greenbrier's partners include Jerry Greenwald, former chairperson and chief executive of UAL Corp., parent company of United Airlines, and former chief financial officer of Chrysler Corp. The investors' spokesperson said no decision was imminent and union leaders would be involved in any final details. "There is a carefully managed process underway. The union's view of the outcome is an important factor in any decision." London plant union leaders said they're worried about the possibility of an investment group buying the plant. "The concern is that it's not a Bombardier," said Terry Mason, Canadian Auto Workers Local 27 plant chairperson. "An investment group buying it isn't very good news. They are interested in making money, rather than locomotives. They may want to turn it over for a profit or split it up and sell off parts for a profit. "We've been through a rough couple of years and the defence division was sold." Owned by automaker General Motors, which has been trying to focus on its core car and truck business, the locomotive plant was part of a sprawling Oxford Street complex that included GM's defence division until the company sold that to giant U.S. defence contractor General Dynamics last year. The locomotive plant faces layoffs by year-end if new orders aren't brought in. "Would we be surprised by a sale? Obviously not," said Tim Carrie, president of Local 27. "It (London) has been up for sale for quite some time." But there's no point worrying about rumours, Carrie said. The CAW's contract with GM ends in 2005 and a new buyer would inherit it, Carrie said. But MacDonald said he doesn't want to take any chances. London can't afford to lose any more companies, he said. "(Some) just left and nobody really did much or said much." A GM spokesperson said there was no announcement coming this week. "There is certainly nothing to announce on this today or any time soon," said Curt Swenson, GM spokesperson in LaGrange, Ill. CHRONOLOGY - September 1949: Construction begins on General Motors Diesel Ltd.'s London plant on Oxford Street. - June 1950: Production begins. - Sept. 15, 1950: Canadian Pacific Railway takes delivery of first locomotives produced at the plant. - July 1957: The Aerotrain, the forerunner of modern Canadian-built high-speed trains, is tested. - June 1971: Terex, the world's largest dump truck, later renamed Titan, is tested and production planned. - 1976: GM Diesel adds defence division. - 1977: Company wins contract to supply Canadian Forces with 491 light-armoured vehicles valued at $170 million. - October 1978: Transit bus line is shut down. - September 1982: $625-million contract awarded to build 969 light-armoured vehicles for U.S. Marine Corps. - January 1985: Production of Terex Titan stops. - October 1987: GM Diesel awarded $17-million contract for 12 light armoured vehicles for the U.S. Marine Corps, an important step in what would become a huge contract. - June 1991: Federal government passes Bill C-6 to allow export of automatic weapons. Sale of light-armoured vehicles to Saudi Arabia depends on bill. - October 1999: $20-million capital investment announced for London plant. - August 2000: GM Diesel Defense Division changes name to GM Defense. - November 2000: GM Defense and General Dynamics Land Systems land $6-billion joint contract -- the largest industrial deal in London's history -- to build 2,131 light armoured vehicles for U.S. Army. - February 2002: GM Defense names London global headquarters for all GM Defense work. - Dec. 6, 2002: About 870 workers in the Electro-Motive Division receive layoff notices, as the company winds down a massive U.S. railway order. - Dec. 19, 2002: General Dynamics buys GM Defense for $1.1-billion US. If one of these deals go through, it will be very sad news for the RR industry. What the HE double hockey sticks is GM thinking!!??[B)][V][V][V] Any thoughts?
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