General Motors (GM) has sold EMD . . .

[Sterling1]

I found this on the Trains newswire and it seems that GM has decided to sell EMD to Greenbriar. I have wondered if EMD will stay the same or turn into an entirely different company.

Your thoughts and opinions are welcome on this topic . . .

Matt

[Anonymous]

So GM isn't going to make locomotives anymore?

[Anonymous]

NOOOOOOO!!!!!!!

[arbfbe]

Perhaps they will rename the operation Electro Motive Corporation, just like the old days.

Alan

[mustanggt]

I always disliked GM (hints at username)

[AntonioFP45]

As I stated on another related thread, this is indeed saddening in a symbolic way. It might not be all doom and gloom though.

I used to work for the tranist bus industry and I remember in the early 90s when GM sold it's transit bus division to NOVA. The RTS bus model continued to be manufactured, however, it no longer held top status.

Looks like GE is on top of the food chain for now. Hopefully with EMD's new AC and ACE units they'll stay for the long haul. So ironic that just 2 decades back many of us used to laugh at GE's U-Boats (mechanical nightmares for mechanics)

[Anonymous]

QUOTE: Originally posted by mustanggt

I always disliked GM (hints at username)

[tup]Is there a Ford fan that does like GM?? (hint: NO!)

What kind of company is Greenbriar, I've never heard of them?

[Anonymous]

Dear cjm89,
From what I understand, they're basically a company that buys other companies. I have heard it described as a buyout company. If anybody else would like to add to or correct this, be my guest.

Sincerely,
Daniel Parks

[espeefoamer]

Doesent Greenbriar build freight cars?

[Anonymous]

Greenbriar and Berkshire Partners are the two investment groups that purchased the assets of EMD.

They've got a reasonably good track record of getting good value out of their prior investments and this time probably won't be any exception.

General Motors has been selling off non-core assets for some time in order to get it's underfunded pension trust back into compliance. Had it not been for the billions in underfunding on the pensions I suspect they would not have put EMD on the block.

The sale of the company, while the terms have not been disclosed, is in the neighborhood of $500 to 600 million.

General Motors has not been shy in the past year stating it would dispose of EMD if the terms would be met. The new ownership is expected to infuse more money into the company and become more aggressive in selling more locomotives.

The new owners will be meeting with the unions soon to discuss the purchase, and the sale will require union ratification of the new labor agreement. It's expected that there will be new work rules and a wage concession in that new employees hired after the agreement date will come in at lower wages and a benefit package that will not have a defined pension. This should help EMD keep a lid on costs and may allow the company to offer locomotives closer to what GE is selling their product for. Currently GE holds an advantage in price on new locomotives. It's a guess as to what sales would have been like the past few years if EMD and GE locos were priced at the same level, but it wouldn't be too far a stretch to think that EMD would have received more sales if the playing field was level.

[Sterling1]

I know Greenbriar was mentioned in the 2004 February issue, but never exactly knew who they were. Thanks for the information.
Matt

[Anonymous]

Just as long as it stays an American Identity. Maybe Amtrak won't be the only one with Toyota on it's side. It chokes me up thinking of a Mitsibitchi Geep.........

[GP40-2]

Since their main production falcility is in Canada, they stopped being an "American Identity" some time ago.

[Anonymous]

EMD's are produced in canada and some in mexico. Only parts are produced here in th USA.

[daveklepper]

But possibly the new company will consolidate manufacturing with one of the railcar factories it controls? Would that not bring jobs back to the USA?

Also an independent steel company does a lot of body fabrication and assembly for EMD in the USA. The name of the company includes "steel" but I don't remember the full name.

[Anonymous]

GM doesn't make any profit from building anything these days; their money comes from their money lending operations. The huge portion of costs going to pension support takes a sizable part of it.

I suspect GM will be spinning off or closing some of their auto brands in the not too distant future; EMD out is only the start.

[Anonymous]

1. Greenbrier with an e builds and leases cars (Gunderson). Greenbriar with an a is an investment company. No relation.
2. La Grange builds the engines, main generators, electrical cabinets. That's 85% of the value of the locomotive. That's in the U.S. What's this about it "not being an American company"? Do you shop at Wal-Mart? Buy gasoline? Burn natural gas in your furnace?
3. Every large industrial concern has operations all over the world and purchases components from everywhere. What's so strange about that?
4. SuperSteel is a contractor for sheet metal such as hoods.
5. The value of EMD is at least 90% "going concern value." The purchase price reflects its future positive cash flow. Shutting it down would be irrational. Anyone have evidence that Warren Buffet (Berkshire Partners) is irrational? Sure, he could sell it: the new buyer has the same problem, unless he is is also irrational.
6. Whether GM puts its positive cash flow into its money-lending pocket or its car-building pocket is irrelevant. Both pockets are on the same pair of pants.

OS

[zardoz]

QUOTE: Originally posted by GP40-2

Since their main production falcility is in Canada, they stopped being an "American Identity" some time ago.

Canada IS part of America; so is Mexico; so is Niceragua; so is Brazil.
North America
Central America
South America.

I chuckle to myself whenever someone waves the stars & stripes and brags about being an "American". Shouldn't have slept through geography class....

[Anonymous]

... and since James K. Polk we've considered the whole hemiphere our sphere as a matter of national policy anyway!

An "A" in geography for Zardoz.

OS

[jsoderq]

Canada is part of the North American continent, not part of America , the country. Canadian military is not part of the American Army.

[Anonymous]

And then people in the USA are mystified when everyone else on this continent thinks they're arrogant? My friend, I do business every day with people in other countries. You must have no idea how dearly this sort of attitude costs us. Other people do not like being treated as second-class humans, and when they see people in the U.S. pronounce that the only Americans are the ones in the U.S. of A., they begin to think we're rooking them in every other respect, too.

OS

[Anonymous]

It seems that no matter how hard North Americans try to tell you. America is a loosely used self-ego term used by the people of the United States of America, that they are the only Americans in the world. You seem to miss the point that United States is only one country of the Americas. Canadians are as much Americans as you are. I take it you never go outside of the US or never deal with stocks or companies outside of the US. EMD operates as an International company bearing an American identity. This means it uses facilities in US, Canada, and Mexico.(possibly more in the Southern Hemisphere). It was started by a company in the United States and has remained basically a North American Corperation. The point made was I hoped it wouldn't be run by Arabians, Asians or European Companies...............

[fuzzybroken]

QUOTE: Originally posted by O.S.

4. SuperSteel is a contractor for sheet metal such as hoods.

OS

I used to work on the southwest side of Milwaukee (actually Greenfield), right on WIS-100, the Milwaukee beltline. It was always an interesting sight to see EMD long hoods being shipped by truck (!) down the highway, past my place of employment.

-Mark
http://www.geocities.com/fuzzybroken