Caterpillar buys EMD

[wholeman]

 I found this interesting.

http://www.foxbusiness.com/story/markets/caterpillar-buys-locomotive-maker-m/

[CAZEPHYR]

 It is interesting that Caterpillar might want to make a go out of the old EMD reputation and compete with GE again.  My thought is that Caterpillar will try to use their diesels motors and that might give them a new market or way to approach the major railroads that are still buying.  They must be to offer the same kind of service and warranty coverage that has made GE the top dog in the locomotive market today. 

By the way, 820 million sounds like play money for the EMD company if it had a good future in the market.   Probably the lack of orders and future orders has sidelined the once great company to a yard track. 

 Quote from article.

Construction-equipment maker Caterpillar (CAT: 60.0484, -0.7016, -1.15%) said Tuesday it will buy locomotive maker Electro-Motive Diesel for $820 million from a private-equity firm.

The purchase would represent Caterpillar's its first full foray in a rail equipment business at a time when more freight is being moved on rail and business leaders such as Warren Buffett have forecast more rail use in the future.

Caterpillar will purchase EMD from Berkshire Partners, a Boston-based private-equity firm unrelated to Buffett’s Berkshire Hathaway.

Berkshire Partners and another private-equity firm, Greenbriar Capital, purchased EMD in 2005 when its long-time owner General Motors decided to put the company up for sale. The firm had sales of $1.8 billion last year and has an installed base of 33,000 diesel-electric locomotives in the U.S.

EMD will become a business segment of Progress Rail Services, which is a wholly-owned subsidiary of Caterpillar.

"The acquisition of EMD will enable us to provide rail and transit customers an industry-leading range of locomotive, engine and emissions solutions, as well as unmatched aftermarket product and parts support and a full line of rail-related services and solutions," said Progress Rail CEO Billy Ainsworth in a statement.

 

 

 

[tatans]

Hmmm, big yellow locomotives with treads instead of wheels, an interesting concept, that should eliminate wheel-slip.

[maxman]

I wonder what kind of plow they'll use.

[YoHo1975]

This is a redundant thread to the one in the Trains forum. There's a bit better information in there, but I would point out that. The poster above sells EMD well short. And considering every time Cat has tried to put its larger engines in a locomotive, I wouldn't hold my breath waiting for them to replace the 710.

[cedarwoodron]

At least it has been bought by an American company with a workhorse reputation, rather than an unpronouncable Chinese firm that would hijack all the jobs overseas!

[YoHo1975]

 Hmm, this got moved out of the MR forum, but it's still redundant to the other thread in the general trains forum.

[Westaussie]

 

So true, we have alot of Chinese wagons[cars] here in Australia and within a month safety notices come out alerting of cracks in the wagon body.