So, I don't want to start a political discussion on Shadow banks or Dodd-Frank or any of that, but from a practical perspective, GE Capital had as much to do with GE's rise to Locomotive dominance. Their ability to self-finance their customers allowed them to provide favorable terms that made their products even more compelling. Now that GE Capital is divesting of much of these assets, how will it affect locomotive purchases? If at all?
GE Capital does consumer finance, such as personal banking, and commercial real estate, such as office buildings. GE will continue to have a finance segment for industrial products such as turbines and locomotives. After the divestment of GE Capital, finance operations will contribute only around 10% with industrial operations contributing 90% of revenues.
GE has always had a finance segment for financing transactions related to industrial products. The finance segment of the company's operations was only expanded to its present incarnation under the tenure of Jack Welch.
JoeBlow GE Capital does consumer finance, such as personal banking, and commercial real estate, such as office buildings. GE will continue to have a finance segment for industrial products such as turbines and locomotives. After the divestment of GE Capital, finance operations will contribute only around 10% with industrial operations contributing 90% of revenues. GE has always had a finance segment for financing transactions related to industrial products. The finance segment of the company's operations was only expanded to its present incarnation under the tenure of Jack Welch.
Back in the day, General Motors had GMAC doing a lot of financing - whether they got into financing and/or leasing of locomotives I don't know.
Never too old to have a happy childhood!
BaltACD JoeBlow GE Capital does consumer finance, such as personal banking, and commercial real estate, such as office buildings. GE will continue to have a finance segment for industrial products such as turbines and locomotives. After the divestment of GE Capital, finance operations will contribute only around 10% with industrial operations contributing 90% of revenues. GE has always had a finance segment for financing transactions related to industrial products. The finance segment of the company's operations was only expanded to its present incarnation under the tenure of Jack Welch. Back in the day, General Motors had GMAC doing a lot of financing - whether they got into financing and/or leasing of locomotives I don't know. Yes, mentioned in the GM Story, GMAC did finance locomotives and also financed their leasing program. All to the advantage of the purchasing/leasing road.
Caterpillar, parent company of EMD, has a financing operation as well.
Financing from locomotive builders was very important 20+ years ago, when the financial condition of the railroads was nowhere as good as it is now.
These days, it's not essential - more like a convenience, and maybe providing more flexibility such as at the end of a lease.
- Paul North.
K4sPRR BaltACD JoeBlow GE Capital does consumer finance, such as personal banking, and commercial real estate, such as office buildings. GE will continue to have a finance segment for industrial products such as turbines and locomotives. After the divestment of GE Capital, finance operations will contribute only around 10% with industrial operations contributing 90% of revenues. GE has always had a finance segment for financing transactions related to industrial products. The finance segment of the company's operations was only expanded to its present incarnation under the tenure of Jack Welch. Back in the day, General Motors had GMAC doing a lot of financing - whether they got into financing and/or leasing of locomotives I don't know. Yes, mentioned in the GM Story, GMAC did finance locomotives and also financed their leasing program. All to the advantage of the purchasing/leasing road.
GMAC Was started in 1919 as the financial services arm( General Motors Acceptance Corp) of General Motors Corp.
In 2009 GMAC was morphed into an institution known as ALLY Financial Services (Bank?) and apparently spun off of General Motors.
see linked @ http://en.wikipedia.org/wiki/Ally_Financial [usual disclaimers]
FTL:[snipped] "...The company was bailed out by the US Government during the financial crisis of 2007–08 taking over from its previous owner General Motors. On 24 December 2008, the Federal Reserve accepted then-GMAC's application to become a bank holding company.[2] Ally returned to profitability in 2010, posting a net profit of $1.075 billion for the fiscal year.[1] Ally planned but did not execute an initial public stock offering in 2011.." [snip]
Sam, EMD hasn't even been part of GM since 2005. So the recent goings on with GMAC have no relevance here, presuming that you're trying to suggest that EMD perhaps is in a similar situation as GE may be in where locomotive financing is concerned.
Leo_Ames Sam, EMD hasn't even been part of GM since 2005. So the recent goings on with GMAC have no relevance here, presuming that you're trying to suggest that EMD perhaps is in a similar situation as GE may be in where locomotive financing is concerned.
Leo: Understand your point. Locomotive financing is a 'tool'. A corporation would be remiss in not offering that option as a part of their 'sales tool box'. GE and its financial arm ( by whatever the name is these days). Offers financing to locomotive buyers, if the customer wants it. I would guess that Caterpillar would offer similar options, all across their product line, as well.
I posted the information about ALLY Bank as nothing more than a marrter of interst here. I had heard some of the information contained in the posted link, but was curious about confirmation as to its origins. It seems to be a popular thing in today's financial circles to rename old line companies with 'modern names'(?) I am not exactly sure of what that strategy gets a business in that process. Just my
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