WILMERDING, Pa. and CHICAGO — Wabtec and GE Transportation are combining, a cording to a statement released at 7 a.m. EDT today, creating what Wabtec says will be a “Fortune 500 company [and a] global leader in rail equipment, software an...
http://trn.trains.com/news/news-wire/2018/05/21-wabtec-ge-transportation-announce-merger
Brian Schmidt, Editor, Classic Trains magazine
I wonder if George and Thomas are rolling over in their grave's?
Semper Vaporo
Pkgs.
Semper VaporoI wonder if George and Thomas are rolling over in their grave's?
Probably duking it out underground - watch out for earthqukes in the near future! I guess plate tectonics is still active.
Never too old to have a happy childhood!
Anti Trust!
I went to Wabtec's website and couldn't find any information on where they manufacture their products.
1) How much manufacturing does Wabtec actually do in the United States?
2) Does Wabtec tolerate unions or are they like Caterpillar?
JoeBlowI went to Wabtec's website and couldn't find any information on where they manufacture their products. 1) How much manufacturing does Wabtec actually do in the United States? 2) Does Wabtec tolerate unions or are they like Caterpillar?
http://cs.trains.com/trn/f/741/t/270121.aspx
I think George and possibly Nikola are somewhere being very smug watching Edison squirm as GE starts to fail and morphs into something Thomas (and JPMorgan) would not approve of.
Wabtec own Motive Power in Idaho. My impression is that they are the biggest rebuilder of locomotives in the USA (open to correction) as well as having a couple of lines of new locomotives, including passenger locomotives. If they are combined with the GE operation, that would be an even bigger force in new and rebuilt locomotives, with a lot more rebuildng experience than GE itself. Both MP and GE are involved in rebuilding EMD locomotives.
Peter
M636CWabtec own Motive Power in Idaho. My impression is that they are the biggest rebuilder of locomotives in the USA (open to correction) as well as having a couple of lines of new locomotives, including passenger locomotives. If they are combined with the GE operation, that would be an even bigger force in new and rebuilt locomotives, with a lot more rebuildng experience than GE itself. Both MP and GE are involved in rebuilding EMD locomotives. Peter
The problems I see with the resulting company - will it have the financial leverage like GE has had vs. EMD/CAT to close deals on their financing abilities, not just the features of their products.
Motive Power has existed on ther perifery of the locomotive market - not in the mainstream. Sort of like doing well in a Double A league - the merger moves the entire result into the Majors. Does WABTEC and Motive Power have major league ability?
The internal political struggles of the merged property will prove illuminating.
BaltACD M636C Wabtec own Motive Power in Idaho. My impression is that they are the biggest rebuilder of locomotives in the USA (open to correction) as well as having a couple of lines of new locomotives, including passenger locomotives. If they are combined with the GE operation, that would be an even bigger force in new and rebuilt locomotives, with a lot more rebuildng experience than GE itself. Both MP and GE are involved in rebuilding EMD locomotives. Peter The problems I see with the resulting company - will it have the financial leverage like GE has had vs. EMD/CAT to close deals on their financing abilities, not just the features of their products. Motive Power has existed on ther perifery of the locomotive market - not in the mainstream. Sort of like doing well in a Double A league - the merger moves the entire result into the Majors. Does WABTEC and Motive Power have major league ability? The internal political struggles of the merged property will prove illuminating.
M636C Wabtec own Motive Power in Idaho. My impression is that they are the biggest rebuilder of locomotives in the USA (open to correction) as well as having a couple of lines of new locomotives, including passenger locomotives. If they are combined with the GE operation, that would be an even bigger force in new and rebuilt locomotives, with a lot more rebuildng experience than GE itself. Both MP and GE are involved in rebuilding EMD locomotives. Peter The problems I see with the resulting company - will it have the financial leverage like GE has had vs. EMD/CAT to close deals on their financing abilities, not just the features of their products.
Thanks, Peter(M636C): It seems more information is creeping out from the corporate world, and into a common knowledge base. For one, I was aware of Motive Power in Idaho; but apparently was unaware that they were a member of WABTEC's Corporate family. A relationship that would, in some ways, mirror the EMD/Progress Rail relationship. Interesting for competition.
As to the angle of 'Finance' mentrioned by BatlACD; GE Capital has been spun out of GE's Corporation, at some point in the recent past. As they have also divested themselves of their goal of downsizing by $20 Billion Dollars in Corporate value.
The following linked site is a recent[05/21/18] Reuters article on this subject, and lays out the tax advantages, and finances in some detail :
@ https://www.reuters.com/article/us-getransportation-m-a-wabtec/ge-to-merge-transportation-unit-with-wabtec-in-11-1-billion-deal-idUSKCN1IM12I
The 'spin' seems to be GE merging into WABTEC. (?)
mudchicken I think George and possibly Nikola are somewhere being very smug watching Edison squirm as GE starts to fail and morphs into something Thomas (and JPMorgan) would not approve of.
I think it would be more like "morphs into something that Coffin and Morgan would not approve of". Coffin tried to get Westinghouse into GE, boasting to George about how he cheated Elihu Thompson out of his share of the Thompson Houston company, which was emphatically not the way to impress George. Westinghouse is grossly under appreciated these days.
While Tesla did come up with the idea for the induction motor and polyphase AC, much of the original impetus for AC came from Stanley and the development of a practical induction motor was due to B. G. Lamme (Ohio grad).
23 17 46 11
GE will be a scant majority owner in the new company (50.1%)
One thing I'm wondering about this merger is how it will affect the ongoing business relationship Wabtec has had with Cat/Progress Rail(i.e the late, great EMD)?
The company is a major component supplier to the entire OEM locomotive industry and that side of their business is much bigger than the manufacture/remanufacture of whole locomotives has been for them. Brake systems/components are a prime example, after all the the WAB in Wabtec stands for Westinghouse Air Brake.
Is Cat/Progress going to have a sourcing issue?
"I Often Dream of Trains"-From the Album of the Same Name by Robyn Hitchcock
azrailGE will be a scant majority owner in the new company (50.1%)
GE will get a $2.9 billion up-front cash payment and 9.9% of the new company. The GE shareholders get 40.2% and existing Wabtec shareholders 49.9%.
9.9 + 40.2 = 50.1% but that doesn't mean that GE can control these completely.Regards, Volker
edblysardDon’t know if they can hang there with the big guys, but they do make a very good switching locomotive.
Thanks to Chris / CopCarSS for my avatar.
VOLKER LANDWEHR azrail GE will be a scant majority owner in the new company (50.1%) GE will get a $2.9 billion up-front cash payment and 9.9% of the new company. The GE shareholders get 40.2% and existing Wabtec shareholders 49.9%. 9.9 + 40.2 = 50.1% but that doesn't mean that GE can control these completely.Regards, Volker
azrail GE will be a scant majority owner in the new company (50.1%)
My "Six" GE shares are happier now.......
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