No More GM Locos Made by GM

[jrw249]

Deal is expected to close this week on the sale by GM of their Locomotive Unit.

[Anonymous]

Details?

[csxengineer98]

will the new manufactor inprove the quility of the motive power...becouse under EMD ..it SUCKED...got on a brand new sd70mac not to long ago...and started to flip the electical brakes on so i can breath some life into this still smelling of new locomotive smell..and as i toggle the breakers....2 of them have the plasict break off in my hands....real EMD quility parts for you....
csx engineer

[Junctionfan]

That reminds me of line from the movie Armagedon. The spaceshuttle crew member said that the Russian cosmenat shouldn't touch anything on the shuttle because they were American components. His response was "American components, Russian components; all made in Taiwan!"

[AntonioFP45]

This to me is sad "Symbolically" as when it came to tough, rugged, "Diesel" locomotives EMD had bragging rights for years. As CSXEngineer points out, though, it seems that quality has been on the wane for a while.

Why is GM selling the locomotive division? Not profitable enough? Aren't the new super efficient AC or ACE units slated to replace the remaining SD40-2s and SD50s on CSX, UP, and BNSF?

I just would hate to see some a company with a weak or moderate reputation take it over and it flops because railroad purchasing depts. are leary of dealing with companies that aren't well established.

I'm pretty sure that GE's executives are smiling as their #1 competitor is going through this "shake through".

[jrw249]

GM hasn't made any money off the unit for the last couple years. The buyers are the Greenbriar Equity Fund and Berkshire Partners ( A Buyout Fund).

[Anonymous]

QUOTE: Originally posted by AntonioFP45

This to me is sad "Symbolically" as when it came to tough, rugged, "Diesel" locomotives EMD had bragging rights for years. As CSXEngineer points out, though, it seems that quality has been on the wane for a while.

Why is GM selling the locomotive division? Not profitable enough? Aren't the new super efficient AC or ACE units slated to replace the remaining SD40-2s and SD50s on CSX, UP, and BNSF?

I just would hate to see some a company with a weak or moderate reputation take it over and it flops because railroad purchasing depts. are leary of dealing with companies that aren't well established.

I'm pretty sure that GE's executives are smiling as their #1 competitor is going through this "shake through".

Ill bet that they are too.

[BentnoseWillie]

Found a source - http://news.ft.com/cms/s/76f14326-642b-11d9-b0ed-00000e2511c8.html

Note that the only source they directly quoted that an announcement is forthcoming was Buzz Hargrove, the president of the Canadian Auto Workers (which represents the employees at GMDD in London). While probably in the loop to some extent, he wouldn't be directly involved in these talks, so anything could yet happen.

[CSSHEGEWISCH]

It has been pointed out elsewhere that the sale of EMD is consistent with GM's sale of non-automotive businesses, using the cash generated to pay off pension and other obligations.

It has been mentioned that corporate instability at Fairbanks Morse in the 1950's led to losses of possible sales of Train Masters to several roads, with IC being the prime example. On the other hand, several changes in ownership at Boise/MPI seem to have had little effect on their business.

[Anonymous]

There was talk of Caterpillar wanting to buy EMD, I'd of rather seen them buy EMD.

[espeefoamer]

EMD units have,in the past, been rebuilt, some several times, and used in secondary freight and switching service.GE units have commonly been used for the term of their 15 year lease, then scrapped.Will the new owners keep up EMDs traditional high quality?If not,will railroads have to buy new units for secondary and switching service?If so,new models will have to be produced with lower horsepower for these services.I guess we'll just have to wait and see what happens.I'm sure when the new company gears up production, Trains will run a suitable article.Historically, it's sad to see EMD dissapear[:(].

[Anonymous]

The new EMD should be leaner, meaner, and much more aggressive in the sales department. New money will be infused into the company.

GE held a price advantage over EMD. The new ownership will be working with the unions to ratify a new contract that in part will call for new hires to come in at a substantially lower pay than current employees and no longer have a defined pension. If this happens it may well help EMD keep costs down to a point that it can compete with GE on a dollar for dollar basis.

If both brands were selling for the same list price I think EMD would probably enjoy brisk sales. GE and GE Capital Credit were putting together some creative pricing and financing packages that EMD could not match.

The investors that purchased EMD have a long track record in restoring value to companies they purchase. If they didn't see some potential to EMD they would have had plenty of other options for their investment dollar.

Don't let the union workers see the title to this thread. They are looking forward to a new three year contract with a bright future.

[ericsp]

I do not know what the sources are that say EMD is being sold because it was not doing well, there seems to be another point of view though. http://www.trains.com/community/forum/topic.asp?page=1&TOPIC_ID=25088

Hopefully the noses will be restyled now. I saw the pictures of the CSXT SD70ACEs. Those were just about the ugliest things I have ever seen. They could make a freight train take a dirt road. Has anyone ever heard about the origin of that phrase?

[eolafan]

Story in the Chicago Tribune newspaper this morning announcing the sale to Berkshire. Mentioned that Cat. was interested but not successful in bidding. Also mentioned that it is expected for EMD to be much strongerr under new ownership.

[Anonymous]

Eric ESPEE:

If you ask me every body panel on the SD70ACe is horrible looking. It'd of been much better to keep the SD70MAC styling and add the new technology to their best design.