Trains.com

3 years or 50,000 miles

1589 views
4 replies
1 rating 2 rating 3 rating 4 rating 5 rating
  • Member since
    July 2006
  • From: Aledo IL
  • 1,728 posts
3 years or 50,000 miles
Posted by spokyone on Wednesday, November 26, 2008 10:14 AM

When the RR buys a new locomotive, is there a warranty that comes with it? And what sort of things are covered? Fuel usage? TE? Does the RR determine that the problem is covered by the warranty, or does the manufacturer? I believe a RR has a lot more clout than a guy that buys a new truck.

  • Member since
    November 2007
  • 2,989 posts
Posted by Railway Man on Thursday, November 27, 2008 4:18 PM

Locomotives are not sold under a one-size-fits-all warranty but on individually negotiated contracts for each order.  The contracts will specify performance standards (e.g., fuel consumption, tractive effort), availability rates, coverage of manufacturer defects, etc.  The terms and conditions are individualized and much depends on the market conditions at the time the deal is negotiated. When manufacturers are flush with orders the terms they will accept may not as good as they are when they need to fill the factory floor.

This is very common for anything that isn't a consumer good or a consumer service sold on a mass basis at lowest possible cost.

The railroad might have more clout with a vendor but all that means is that the vendor will take the time to individually negotiate a deal rather than wait for the next customer to walk through the door.  It doesn't mean the terms and conditions are better.  If someone wants a locomotive with a manufacturer's warranty that is long-term and covers everything, they will pay what it costs to get it.  There's no free lunch here, except maybe for the lawyers and managers who have never seen a contract they couldn't spend weeks agonizing over the placement of a comma.

RWM

  • Member since
    October 2006
  • From: Chicago, Ill.
  • 2,843 posts
Posted by al-in-chgo on Thursday, November 27, 2008 7:18 PM

Railway Man

Locomotives are not sold under a one-size-fits-all warranty but on individually negotiated contracts for each order.  The contracts will specify performance standards (e.g., fuel consumption, tractive effort), availability rates, coverage of manufacturer defects, etc.  The terms and conditions are individualized and much depends on the market conditions at the time the deal is negotiated. When manufacturers are flush with orders the terms they will accept may not as good as they are when they need to fill the factory floor.

This is very common for anything that isn't a consumer good or a consumer service sold on a mass basis at lowest possible cost.

The railroad might have more clout with a vendor but all that means is that the vendor will take the time to individually negotiate a deal rather than wait for the next customer to walk through the door.  It doesn't mean the terms and conditions are better.  If someone wants a locomotive with a manufacturer's warranty that is long-term and covers everything, they will pay what it costs to get it.  There's no free lunch here, except maybe for the lawyers and managers who have never seen a contract they couldn't spend weeks agonizing over the placement of a comma.

RWM

Not to be provocotive, but are there diesel-electric units built over the past (for example) 20-25 years that have a high "lemon" quotient, despite a warranty? 

Have there been instances when the locomotive operator (the RR co.) did not take care of the units according to the rules and thus voided the warranties?  -  a.s.

 

al-in-chgo
  • Member since
    June 2002
  • 20,096 posts
Posted by daveklepper on Friday, November 28, 2008 3:23 AM

There is the famous case of the New Haven painting a few 8200-series American Flyer coaches silver and hauling them as trailers behind Budd RDC's, and Budd finding out and informing the New Haven management that continuing to do so would void the guarantees.

  • Member since
    August 2006
  • From: South Dakota
  • 1,592 posts
Posted by Dakguy201 on Friday, November 28, 2008 7:17 AM

Railway Man

There's no free lunch here, except maybe for the lawyers and managers who have never seen a contract they couldn't spend weeks agonizing over the placement of a comma.

 

Thumbs Up         Smile,Wink, & Grin

 

 

 

Join our Community!

Our community is FREE to join. To participate you must either login or register for an account.

Search the Community

Newsletter Sign-Up

By signing up you may also receive occasional reader surveys and special offers from Trains magazine.Please view our privacy policy