GE To Sell Transportation Division

Hardcoaler Nov 15, 2017

  1. Hardcoaler

    Hardcoaler TrainBoard Member

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    It's been announced that General Electric plans to exit locomotive manufacturing when it sells its transportation division within the next two years. Once a global industrial and banking conglomerate, GE's fortunes have fared badly in the last 15 Years, with its share price now a third of what it once was. It'll be interesting to see who's interested in acquiring the locomotive business. GM sold EMD to Caterpillar in 2010.
     
  2. BoxcabE50

    BoxcabE50 HOn30 & N Scales Staff Member TrainBoard Supporter

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    Who, if anyone, would be interested? Read an article which talked of engine sales essentially being non-existing since the Tier 4 mandate took effect.
     
  3. Point353

    Point353 TrainBoard Member

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    CRRC/CSR-Qishuyan. They already teamed up with GE on the HXN5 locomotive.
     
  4. Hardcoaler

    Hardcoaler TrainBoard Member

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    The Chinese with CRRC was on my list of potential buyers too. Perhaps Siemens, Alstom or Bombardier? I hardly know who manufactures locomotives these days.
     
  5. Hardcoaler

    Hardcoaler TrainBoard Member

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    Interesting. I'll bet that the huge decline in coal loadings has also sidelined many good units.
     
  6. Hytec

    Hytec TrainBoard Member

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    I doubt if that's anywhere close to the real reason that GE is selling all the low-profit divisions. GE's cash flow has gone nearly flat for the past five years, if not longer. GE needs cash and fast. Transportation, Light bulbs, and a few other divisions are low-earners because there is no gee-whiz new development or expanding sales in the near future like the medical field, aircraft engines, and power generation. Face it, once you've sold everybody a light bulb, you have to wait until it burns out before you can sell them another. The divisions that GE is selling off used to be their base business, ones that could be relied on for continued cash flow. But then Wall Street and the MBA's got into running companies and demanded instant profits and growth, growth, growth. When I worked for GE 50+/- years ago, it was the second largest corporation in the world behind EXXON (ESSO). There was continued investment into research and development for products that would hit the market in ten, twenty, even thirty years in the future. Now investors demand R&D results in less than five years, preferably one to two years. Sadly, the culture of "instant gratification" has hit everybody, including the largest corporations on the world.

    OK. I'll get of my soapbox.
     
  7. Point353

    Point353 TrainBoard Member

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    With the demise of the Erie plant, the smaller facility in TX might be attractive as a final assembly point for sub-assemblies shipped in from off-shore.
     
  8. bremner

    bremner Staff Member

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    didn't Bombardier used to own Montreal Locomotive Works and got out of the train business?
     
  9. Hardcoaler

    Hardcoaler TrainBoard Member

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    They're still in the locomotive business, at least on the electric side. Jersey Transit operates Bombarier's ALP-46A and ALP-45DPs. I don't know if they catalog diesels, but if not, GE's line could quickly check that box.
     
  10. YoHo

    YoHo TrainBoard Supporter

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    I don't think Bombardier makes any Diesels anymore. They are a likely bidder and to my knowledge, they still technically own MLW. So they are the descendant of Alco.

    I don't see how Siemens would be interested although stranger things could occur. They already have the factory in Sacramento and are making Locos with Cummins. While the GEVO-T4 would be a nice addition to the line and the QSK, at least for now has no version that doesn't use aftertreatment (meaning no freight railroad is gonna buy it). They wouldn't get much more from the rest of the org.

    Bombardier, Alstom and CRRC seem most likely.
     

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