CN to purchase 200 new locomotives from GE Transportation over the next three years
http://www.getransportation.co...ver-next-three-years
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Will GE be around long enough to deliver?
Farmer_Bill posted:Will GE be around long enough to deliver?
Maybe, maybe not, from the sounds of it.
GE seeks to sell locomotive-building business
CHICAGO – General Electric announced plans on Monday to focus on three core industries – aviation, power, and healthcare – leading to the sale of its GE Transportation division and its locomotive product line within two years, the Chicago Tribune reports.
“Today, GE announced that it will divest the Transportation business from its portfolio. The Company is in the early stages of this process and exploring a multitude of possibilities that may include, among several options, creative approaches used to transition GE’s Consumer Finance business into Synchrony Financial or models like the Baker Hughes and GE Oil & Gas merger," spokesman Tim Bader tells Trains News Wire. "This move is in line with GE’s broader efforts to divest $20 billion in assets over the next few years. The Transportation business remains committed to building on its strong culture of innovation, deep domain, world-class technology and digital solutions in a way that best positions the business for growth.”
In July 2017, GE announced that it would shift all locomotive production to Fort Worth, Texas, by the end of 2018, ending production at its famed Erie, Pa., works.
In October 2017, GE named Rafael Santana, one-time president and CEO of GE Latin America, as president and CEO of Chicago-based GE Transportation, effective Nov. 1.
“Today, GE announced that it will divest the Transportation business from its portfolio. The Company is in the early stages of this process and exploring a multitude of possibilities that may include, among several options, creative approaches used to transition GE’s Consumer Finance business into Synchrony Financial or models like the Baker Hughes and GE Oil & Gas merger," spokesman Tim Bader tells Trains News Wire. "This move is in line with GE’s broader efforts to divest $20 billion in assets over the next few years. The Transportation business remains committed to building on its strong culture of innovation, deep domain, world-class technology and digital solutions in a way that best positions the business for growth.”
In July 2017, GE announced that it would shift all locomotive production to Fort Worth, Texas, by the end of 2018, ending production at its famed Erie, Pa., works.
In October 2017, GE named Rafael Santana, one-time president and CEO of GE Latin America, as president and CEO of Chicago-based GE Transportation, effective Nov. 1.
AmeenTrainGuy posted:Are there any other major locomotive builders? What will happen when they pull out?
GE isn't going to shut down their locomotive business, but would seek another company to buy it.
The other major locomotive manufacturer is Electro-Motive Diesel (EMD). The company is owned by Caterpillar through its subsidiary Progress Rail Services, having been sold to Caterpillar by General Motors several years ago.
AmeenTrainGuy posted:So what would happen if GE could not find a buyer?
I guess they will just have to stay in the locomotive building business.
GE is no stranger to taxpayer-funded bailouts.
A single locomotive builder scenario would not be allowed... There must always be two or more... I would not expect what is now the GE locomotive business to disappear just like EMD did not disappear when GM chose to divest themselves of several lower profit margin groups a decade or so ago.
Farmer_Bill posted:GE is no stranger to taxpayer-funded bailouts.
Mr. Edison lives on, in our pockets. 
That's a sweet lookin ride. They should have to keep them that way like fire trucks. Red and shinny.
GE Locomotive, maintains a facility, Grove City, PA, where they do engine upgrades. Also recently moved their corporate headquarters to Boston, MA. GE, within itself, would have at least (2) facilities that do similar operations, at the very least to compare productivity and cost. IMO. Mike CT. It's all about making money, raw profit has to exceed 20% or more.
Regardless of where they end up being built, I for one hope CN would follow NS and UP's lead and come up with some nice heritage paint schemes for those new locomotives. With their 100th anniversary coming up, it would be perfect timing! Lots of potential with the mergers and original subsidiaries.
