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Thread: No more GE Locomotives?

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    Default No more GE Locomotives?

    https://www.thestreet.com/story/1438...er-hughes.html

    This (actually a related article from another news source) popped up in my news feed this morning. First I'd heard of it. Apparently GE plans to shed its locomotive business through either a sale or a spinoff.

    Not sure what to think of this...
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    I heard the company has been struggling. They were getting unwieldy in size and diversity. They needed an influx of cash to keep the main company upright.

    Curious if this will satisfy investors and analysts or else it will probably be big mistake. I would have assumed the locomotive division would have been a solid area of profit. They have their hands in so many areas. You would think they would sell some less robust divisions/companies off. The article does mention a slow down in N America railroad sales (declining coal) but I have not heard any projections that the economy would slow much more in other areas.

    Hopefully, a new owner will be able manage it well and carry on a tradition of innovation.
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    Time for ALCO to rise from the ashes and buy the division?
    Radon Gulch & Tortilla Flats Railway - the 'Good Gas' line! - a minor division of the Santa Fe Southern Railway Co. "Dust, gas and a lot of rocky stuff...

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    Well, if they sell it, there has to be a buyer. So someone will keep making those locos. Unless they can't find a buyer, I guess. Then I suppose they will just shut it down. I don't see that happening, though. It seems like there are a lot more GE units on the road than EMD. I guess one of the railroads might even have an interest in buying them. It is indeed an interesting development.
    Daniel Dawson

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    In the bigger picture, it's much more than locomotives they'll stop making under their brand. They will sell off production of their most iconic product - light bulbs. Bulb sales have gone down in the past few years, no doubt due to the popularity of LED bulbs, which last several times longer, and therefore do not require as many repeated re-purchases.

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    I have mentioned this in other forums on railroad related topics. I wish I could find the book, but back in college we had to read a book on how the stock market will end business in America as we know it....

    GE Transportation makes money, just not enough so for all of us who now are dependent on a 401k etc our investors demand more... Its a deadly chain, as the market forced more companies to get rid of pensions more of us moved to 401ks which again drives the market and forces companies to cut more.

    Back on track, this is quite amazing. EMD has struggled to even make locomotives and now GE the leader is going through "hard times"
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    Quote Originally Posted by Mobile One View Post
    Well, if they sell it, there has to be a buyer. So someone will keep making those locos. Unless they can't find a buyer, I guess. Then I suppose they will just shut it down. I don't see that happening, though. It seems like there are a lot more GE units on the road than EMD. I guess one of the railroads might even have an interest in buying them. It is indeed an interesting development.

    They need to sell for the cash infusion... If nobody buys, doubt they would close it. Maybe Warren Buffet will see the need to buy it.
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    North American Locomotive Sales are the lowest they've been in a decade, so its understandable that GE can be struggling, especially given the large outlay of cash required recently to meet the EPA's emissions restrictions. I heard/read somewhere that there are literally _NO_ new orders penned for the start of 2018 yet, which doesn't bode well. I'm sure it will swing around, but in the same breath, it might not. All the big players have been buying new power for a long time, rather than rebuilding.....there are some new smaller players now (MPI, KLW, etc), and the prevailing trend might shift back towards rebuilds. Norfolk Southern has been doing pretty impressive things with their rebuild programs as of late.

    There is no doubt it's going to be interesting moving forward. The big question is, who's going to fork out the cash?
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    Quote Originally Posted by siderod View Post
    especially given the large outlay of cash required recently to meet the EPA's emissions restrictions.
    This is very true, also what lead NS to go back to the rebuild program so heavily. We have been witnessing serious reliability issues with T4 products, which also kept EMD out of the market for a year.
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    Quote Originally Posted by Bessemer Bob View Post
    This is very true, also what lead NS to go back to the rebuild program so heavily. We have been witnessing serious reliability issues with T4 products, which also kept EMD out of the market for a year.
    CAT (the owners of EMD now) struggled with EPA emissions across all their markets, too .... they're no longer in the Class 8/On-Highway Truck Engine market for exactly that reason. So I can't say as I'm surprised. My understanding was there were tax breaks or incentives in place to encourage new purchases (Probably something to do with stimulating the economy, keeping jobs, etc) .... I don't know if they've dried up or not, but that may play a role as well. VIA Rail had their fleet of 50+ F40's rebuilt a few years back, and they are VERY happy with their performance.

    Like I said, it's going to be interesting to see how this one unfolds.
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    Interesting article -

    GE is broken. Fixing it will be long and difficult


    http://money.cnn.com/2017/11/14/inve...und/index.html

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    I heard Atlas bought GE.



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    This article might shed some light: https://www.cnbc.com/2017/09/27/alst...inas-crrc.html
    And this: https://www.cnbc.com/2017/11/14/wall...estor-day.html
    GE is the last survivor of the original Dow Jones Industrials index.

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    A month ago, I heard that GE sold their appliance division to Whirlpool.

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