Press Release Source: General Motors Corporation GM Agrees To Sell Electro-Motive Division Wednesday January 12, 11:50 am ET DETROIT, Jan. 12 /PRNewswire/ -- General Motors Corp. (NYSE: GM - News), Greenbriar Equity Group LLC and Berkshire Partners LLC today announced that they have reached a definitive agreement in which GM will sell its Electro- Motive Division (EMD) to an investor group led by Greenbriar and Berkshire Partners. Terms of the transaction will not be disclosed. The sale agreement covers substantially all of the Electro-Motive businesses, including North American and international locomotives; power, marine and industrial products; the spare parts and parts rebuild business; and all of Electro-Motive's locomotive maintenance contracts worldwide. Both the LaGrange, Illinois and London, Ontario manufacturing facilities are included in the agreement. The proposed sale is contingent on completing negotiations with the United Auto Workers Union (UAW) and the subsequent ratification by its members. The transaction is expected to close in the first quarter of 2005. "Greenbriar and Berkshire Partners have a long-term commitment to creating value in the railroad industry that extends back to the 1980s. Electro- Motive has outstanding products, employees and a truly global franchise, and we believe the company's prospects are bright," stated Reginald Jones, a managing partner of Greenbriar Equity Group. "GM is pleased to have Greenbriar and Berkshire Partners acquiring the company," said William Happel, GM vice president and general manager of Electro-Motive. "These groups have a long-established reputation for excellence as rail industry investors and financiers. As an independent company with access to the resources of the new owners, Electro-Motive will be well positioned to continue to service its customers and grow the business." Electro-Motive employs approximately 2,600 hourly and salaried people. The company designs, manufactures, markets, sells, and services freight and passenger diesel-electric locomotives and diesel marine and power generation products for use worldwide. Since the early 1930s, Electro- Motive and its associates have produced more than 58,000 diesel-electric locomotives for customers in 73 countries. Electro-Motive diesel engines are used in over 100 countries worldwide. Additional information may be found at http://www.gmemd.com . General Motors, the world's largest vehicle manufacturer, employs about 325,000 people globally. Founded in 1908, GM has been the global automotive sales leader since 1931. GM today has manufacturing operations in 32 countries and its vehicles are sold in 192 countries. Greenbriar Equity Group LLC is focused exclusively on making private equity investments in the global transportation industry, including companies in freight and passenger transport, commercial aerospace, automotive, logistics, and related sectors. Greenbriar and Berkshire Partners LLC have entered into a strategic joint venture and co-investment agreement to address transportation and related investment opportunities. Greenbriar manages $700 million of committed limited partner capital and co-investment commitments and, together with Berkshire, has access to more than $1 billion for investment in privately negotiated equity investments within the transportation industry. Additional information may be found at http://www.greenbriarequity.com . Berkshire Partners has invested in mid-sized private companies for the past twenty years through six investment funds with aggregate capital commitments of approximately $3.5 billion. The firm's investment strategy is to seek companies that have strong growth prospects and to partner with talented management teams who are interested in being owners of the companies they operate. Berkshire has developed specific industry experience in several areas including consumer products, industrial manufacturing, transportation, communications, business services, and retailing and related services. Berkshire has been an investor in over 80 operating companies with more than $11.0 billion of acquisition value and combined revenues in excess of $15.0 billion. Additional information may be found at http://www.berkshirepartners.com . ---------------------------------------------------------------------------- ---- Source: General Motors Corporation
Interesting! Now, I wonder what direction they'll take with EMD? Keep it essentially as is? Aggressively try to increase it's market share? Boxcab E50
Make good looking locomotives for us modlers? Ya know, if they can make the big ones won't it be easyier to make the small ones?
Not unless they can solve the lack of a self-steering truck. GE was eating them alive over that! Tony Burzio San Diego, CA
Tony- That's the sort of thing I'm thinking about. Innovations. Something new to sell potential customers. Boxcab E50
Not unless they can solve the lack of a self-steering truck. GE was eating them alive over that! Tony Burzio San Diego, CA </font>[/QUOTE]I think you've got it backwards. GM had a self steering truck long before GE did. Furthermore GM probably has 1000's of macs with self steering trucks vs maybe 500 or less GE's with self steering trucks. Where GE has the advantage is ability to produce locomotives more quickly than GM.
No need to buy GM if you can't get delivery for several months. Didn't BNSF purchase the first AC powered units from GE? 300 units? I think that tied GE up for over a year. It has been a while back.
If i recall correctly I think CSX was the first receiver of ac units from GE. I think CNW and SP were next then UP. BNSF didn't purchase any ac44's until much much later.
Correct me if I am wrong, BNSF had the SD60MAC that was the first AC locomotive produced in the United States - which was bascially a testbed for the traction with the SD70MAC being the first commercially available AC traction locomotive in the United States
Gentlemen, can someone help an ignoramus out? Doesn't the track steer the truck? What is a self-steering truck?
"What is a self-steering truck? " Not to get too technical...on your traditional three axle truck, all three axles are rigidly mounted in a row, which causes a lot of flange and wheel wear when the truck is forced to go through sharp curves. A self steering truck allows the axles some degree of lateral movement so that the truck can steer itself through the curve instead of having the flanges on the outside wheels constantly trying to bite into the rail. JDLX Elko, NV
