Railworks America

https://www.bizjournals.com/dallas/news/2017/11/13/ge-fort-worth-locomotive-manufacturing.html

Seems like GE has now made a choice and decided to exit the locomotive market. This will leave Progress Rail as the sole freight locomotive manufacturer. This could also mean new builders like Alstom, Bombardier and Siemens might try their hand at producing freight locomotives.

ErikGorbiHamilton wrote:https://www.bizjournals.com/dallas/news/2017/11/13/ge-fort-worth-locomotive-manufacturing.html

Seems like GE has now made a choice and decided to exit the locomotive market. This will leave Progress Rail as the sole freight locomotive manufacturer. This could also mean new builders like Alstom, Bombardier and Siemens might try their hand at producing freight locomotives.

They will sell it to someone, not shut it down. There will simply be a new owner.

ErikGorbiHamilton wrote:https://www.bizjournals.com/dallas/news/2017/11/13/ge-fort-worth-locomotive-manufacturing.html
Seems like GE has now made a choice and decided to exit the locomotive market. This will leave Progress Rail as the sole freight locomotive manufacturer. This could also mean new builders like Alstom, Bombardier and Siemens might try their hand at producing freight locomotives.

Forgive my naivety, but, Electro Motive Division has nearly a Century of experience in the building of locomotives, Bombardier and Siemens can only enter the marketplace with price reductions to get customers aboard, they don't have the same knowledge and experience, however, reading that article in the Press, if Coal and other commodity markets are down, and GE lost 61% in locomotive sales in a year, if there isn't a revenue earning market for locomotives to operate in nowadays, then, surely the major Railroad Companies won't waste money investing in new equipment if it's going to stand idle, irrespective, of who the manufacturers are likely to be.

Cheerz. Steve.

Rumors has it that GE was encouraged to get into the locomotive business to break EMD from having a monopoly (i.e. charging exorbitant prices for their products) that the railroads thought was unfair. Mission accomplished, exit stage right.

I honestly think a lot of this also has to do with the amount of older locomotives being rebuilt and upgraded. NS alone has a huge number of rebuilds being planned over the next few years.

Obviously, stockholders are not happy.......

https://www.cnbc.com/2017/11/14/wall-st ... r-day.html

EMD hasn't made a good locomotive since the SD40-2. Everything else is plagued with issues, be it software, general mechanical reliability, product quality, and design. Everything after it have been absolute dogs.

BNSFdude wrote:EMD hasn't made a good locomotive since the SD40-2. Everything else is plagued with issues, be it software, general mechanical reliability, product quality, and design. Everything after it have been absolute dogs.

Agreed

A lot of emphasis on rebuilding and upgrading. With all the locomotives in mothballs this seems to be the way the market is going. A lot of the new locomotives are for the export market.

BNSFdude wrote:EMD hasn't made a good locomotive since the SD40-2. Everything else is plagued with issues, be it software, general mechanical reliability, product quality, and design. Everything after it have been absolute dogs.

You’ve posted in the past that you liked the SD70MACs, what’s changed in your mind about them since then?

This is gonna be very interesting to see how this all shakes out. I’m not sure what percent of Cat’s business is from EMD or Progress Rail in general compared to it’s mining and heavy equipment divisions. Cat currently has about a $60 billion market value where as GE currently sits at $157 billion. If GE is willing to get rid of a locomotive division that owns roughly 70% marketshare, but is now starting to struggle with a stagnant and slowing sales environment..... then what does that mean for EMD? Will Cat follow GE and eventually jettison the division too? It’s a logical question to ask.

GE has that 1000 locomotive deal with India. But after the first 100 locomotives are assembled here in the USA, the remaining 900 will be assembled in India at a rate of 2 locos per week at a new facility they built there.

Crazy times!

EMD is withstanding the test of time significantly better than anything GE has made. That's the one thing EMD still has going for them. Not too many U-boats you see running around on class 1's and class 2's anymore. To me at least, that's the true test of a design; it's time.

Neither Cat or Progress Rail are going anywhere. These guys have a solid business model in everything they do. The common theme for Caterpillar is building successful divisions that make money. As far as GE I know little or nothing about the locomotive division but the kindest thing that can be said about GE is that for the most part they make money in spite of themselves. Since Immelt came on the scene the company has gone from the dynamo under Welch to a bunch of companies largely with no goals no focus and no direction. Even though the outlook is bleak for new locomotive orders someone with a good eye for manufacturing might still be interested in this beast. Wabco certainly comes to mind when I think of a fit or maybe even more intriguing one of Buffets companies. If Cat tied to buy GE Transportation I think even in this administration the howls would make it a tough deal.
Maybe somebody like Trinity might have the wherewithal to take on something like this. Never count out Honda. Who would have thought that they would successfully bring a light jet to market. They make everything from lawn edgers, generators, cars and now aircraft. Maybe a locomotive might be in their future.

Or Mitsubishi. They already make ships, trucks, heavy equipment. Actually it's hard to think of something technical they don't make.

Chacal wrote:Or Mitsubishi. They already make ships, trucks, heavy equipment. Actually it's hard to think of something technical they don't make.

Mitsubishi already makes the electrical equipment for new EMDs. Inverters, traction motors, etc.

Which market has artificial price supports, extremely low long term capital investment and a tiny property tax foot print?
It isn't heavy industry!

If they were really smart - the would have marketed organic, free-range, artisanal, bottled water. Now where is my free health care?

On the bright side, and heed my words, you short-sighted pack of baby booming weasels: without CAPITAL you are nothing more than a bubble waiting to burst.

I love RWA, I can dress up in my Mr. Monopoly outfit and sneer at the Tulip Speculation of today!

And one more thing, since I have my history swagger going... speaking of GE, anyone remember when JP lent the FED money to keep it from going broke?