Why doesn't Ford Motor Co. make locomotives?

Why doesn't Ford Motor Co. make locomotives?

General Motors doesn't make locomotives either. They spun off EMD a couple of years ago. Neither does Chrysler.
General Motors had an 80% market share of American railroad diesels at its peak, but lost market share to GE. Last I saw, GE is the market leader.

It's apparently hard to make a profit making diesel-electric locomotives in North America. The old-line steam locomotive companies all failed at making profitable diesels. In the end, GM decided not to continue in the business.

There's no reason to think that Ford could make a profit making locomotives.

JoeG wrote:General Motors doesn't make locomotives either. They spun off EMD a couple of years ago. Neither does Chrysler.
General Motors had an 80% market share of American railroad diesels at its peak, but lost market share to GE. Last I saw, GE is the market leader.

It's apparently hard to make a profit making diesel-electric locomotives in North America. The old-line steam locomotive companies all failed at making profitable diesels. In the end, GM decided not to continue in the business.

There's no reason to think that Ford could make a profit making locomotives.

steamal's answer:

Well, GM owned EMD from the 1930s to the 1990s. There must have been something that encouraged them to stay in the field all that time.

There are many reasons, but the bottom line is that it is not that profitable anymore, and if you read many threads here, you will see or read that 1) GM's diesel engines wouldn't be compliant with EPA rules comign soon and 2) GM/EMD's financing hasn't been as attractive.

I'm sure I'm missing some information and ideas, but it's all out there, easy to find.

David Becker

Ford Used to make Small industeral Locomotives but was in the business only for a few years befor geting out.

Heres a few outher well knowen auto/truck makers that built only industreal type locomotives

Mack Trucks
Allis-Chulmers
International Harvister
Caterpiller

Out of all of the Auto makers Plymouth stayed in the markit for a long time befor geting out of the markit.

Nope, wrong Plymouth - the former division of Chrysler Corporation and the former locomotive manufacturer aren't related and never were.

http://en.wikipedia.org/wiki/Plymouth_Locomotive_Works

Mack's the best known of the truck manufacturers that also made locomotives though, and was in the business the longest of those listed.

This is actually an interesting line of thought. GM got out of the field; whereas GE has actually expanded their rail-products line.

How GM, and Alco/Studebaker-Worthington, and all the others can fail where GE can make enough to aggressively expand in the field is mind-boggling.

I think, given the unusual nature of the rail business, low numbers and high individual cost...it takes a very unusual approach to accounting, R&D, financing and marketing to show a profit. And deep, deep pockets...GE has those.

I would hazard a guess that GM is in such trouble in the automobile biz that they didn't want distractions in revamping, in fighting to survive. At core, they weren't a locomotive business - they're an auto company. So they took the money and ran.

Will EMD survive as a stand-alone company? One sure hopes...it would be a disaster for the nation to have to depend on one, only one, source for railroad power. But the complexity and COST of developing, manufacturing, marketing locomotives doesn't encourage.

CR_engineer: I'm not an expert by any means, but something tells me you'll see another player enter the freight locomotive business (or an existing player expand) within the next few years. In another thread I'd speculated about Caterpillar, but Bombardier would be even more likely to jump in. They have a big manufacturing facility in Mexico that they're using to make 100 EMDs under contract for... TFM or someone or other. Plus, they have pretty deep pockets. Whether they buy EMD outright or start producing their own designs (probably not Alco ones), I don't know, but they have to be eyeing the market right now.

Then again, Berkshire Hathaway (current owners of EMD) has their own deep pockets, and may find it worthwhile to invest some money in enlarging EMD instead of letting it go.

What about outher locomotive builders out side the U.S. in countrys like France, Britian, Germany, Russia, China, or Japan? some thows countrys have also produced some vary good locomotives but have never had any real sales in North America.

GM is so screwed up I'll bet they forgot they made locomotives for 30 years. When they found out, they said "What's this all about? We are an auto manufacturer. Get rid of it!"

scharnhorst:

The problem with foreign builders is that very VERY few countries use railroads teh way we do here in America... tonnage, grades, long distances, horsepower, etc.

Why did no other country build a steam engine as big as teh Big Boy or Allegheny... because they didn't need that type of power.

Other countries built gas-turbines, but none were comparable to the 8,500hp for the A-B-Tender Union Pacific turbines.

FORD= Found On Rails Dead

Adriel wrote:FORD= Found On Rails Dead

Ford backwards:

D river

R eturning

O n

F oot


Gadfly

BlackDog wrote:GM is so screwed up I'll bet they forgot they made locomotives for 30 years. When they found out, they said "What's this all about? We are an auto manufacturer. Get rid of it!"

Someone told me that they knew someone who worked for the Lehigh Valeey R.R. who went to a car dealership with serial numbers for window glass used in EMD Locomotive and was able to get replacement glass for a locomotive. This would have been in the late 50's early 60's.

Someone told me that someone else told him that his friend's aunt's sister-in-law...

If it happens to be true, then that's pretty cool.