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EMD Sold
- Discussion of Electro-Motive locomotive products and technology, past and present. Official web site can be found here: http://www.emdiesels.com/.
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On the shop floor in London Ont. , we have heard that La Grange has 30 days to settle their labour difficulties or Greenbrier walks away from the deal.
Greenbrier reps have met with Canadian union officials to inform them of their intentions. If deal goes through ,Greenbrieer claims to intend to improve & ramp up business.
The difficulties will lie with the proposed 2 tier wage system that Greenbrier is pushing in both places.
We have been told many times over the years that a sale is imminent
only to find that GM is just blowing smoke up our ass.
It is getting to be a quite stressful for employees not knowing
how to prepare for the future.
Most off us wish for stability regardless of who the boss is.
By Christmas we may have some answers.
newfman39
Greenbrier reps have met with Canadian union officials to inform them of their intentions. If deal goes through ,Greenbrieer claims to intend to improve & ramp up business.
The difficulties will lie with the proposed 2 tier wage system that Greenbrier is pushing in both places.
We have been told many times over the years that a sale is imminent
only to find that GM is just blowing smoke up our ass.
It is getting to be a quite stressful for employees not knowing
how to prepare for the future.
Most off us wish for stability regardless of who the boss is.
By Christmas we may have some answers.
newfman39
http://trainiaxindex.cjb.net/ out of service 11-19-04
Keep asking keep learning
Keep asking keep learning
Last edited by TerryC on Fri Nov 19, 2004 6:45 pm, edited 2 times in total.
Alright,
Are these guys going to hold onto the whole, or are they going to carve EMD up like the prized goose at Christmas?
Are these guys going to hold onto the whole, or are they going to carve EMD up like the prized goose at Christmas?
~Erik Paulson
Moderator: BNSF :: CN :: CP :: Rock Island :: Rebuilders & Small Loco Works :: Worldwide Railfan :: Western Railfan
Moderator: BNSF :: CN :: CP :: Rock Island :: Rebuilders & Small Loco Works :: Worldwide Railfan :: Western Railfan
newfman39 wrote:On the shop floor in London Ont. , we have heard that La Grange has 30 days to settle their labour difficulties or Greenbrier walks away from the deal.Who is Greenbrier? Where are they located and what do they do? Has any of this information been released, or leaked to the outside world? I did a search on the London Free Press web site... no information there. Maybe I'm looking in the wrong spot. Anyone else have any information? Just the facts or info coming from a credible source -- anything else is just rumors and hearsay.
I found this with two clicks....
http://www.gbrx.com/
They have released nothing about this rumored transaction.
http://www.gbrx.com/
They have released nothing about this rumored transaction.
I think until we get hard facts and evidence, we should consider this information as rumor only.
GM has been trying to dump all its non-automotive assets to work on its core product - the personal automobile.
This story is ALREADY a year old and it is a non-news item.
This story is ALREADY a year old and it is a non-news item.
The news is making the rounds in the wire services. The Union has to vote on it.
GM near deal to sell locomotive unit-sources
Tue Nov 23, 2004 03:57 PM ET
By Michael Ellis
DETROIT, Nov 23 (Reuters) - General Motors Corp. (GM.N: Quote, Profile, Research) is near a deal to sell its locomotive unit to two private U.S. equity firms, ending more than two years of negotiations, but any agreement is contingent upon a new union contract, sources familiar with the negotiations said on Tuesday.
GM agreed to the terms of a joint purchase agreement for its Electro-Motive unit with Greenbriar Equity Group, a $700 million equity fund run by former Chrysler Corp. Vice Chairman Gerald Greenwald, and Boston-based Berkshire Partners, a $3.5 billion buyout fund, said the sources, who asked not to be named.
"I think it's just a matter of time, days rather than weeks," for the deal to be announced, one of the sources said.
The deal is pending ratification by the United Auto Workers union on a new contract for the approximately 800 workers at Electro-Motive's operations in LaGrange, Illinois, the source added.
The source declined to give details of the terms, but said GM would sell the business for less than $1 billion.
Officials with GM, Rye, New York-based Greenbriar Equity and Berkshire Partners declined to comment.
Electro-Motive, which employs about 3,000 workers, is the world's largest manufacturer of diesel-electric train locomotives with operations in LaGrange and London, Ontario, Canada. It also builds diesel power engines for boats, oil rigs and power generators. GM does not disclose financial results for the company, which it has owned since 1930, but financial analysts said it has lost money the last few years.
UNION DEAL
The new union contract is expected to be similar to deals reached earlier this year at automotive parts suppliers Delphi Corp. (DPH.N: Quote, Profile, Research) and Visteon Corp. (VC.N: Quote, Profile, Research) , which allow the companies to hire new workers at a lower pay and benefit scale compared to current employees, one of the sources said. In addition, many employees who had been classified as temporary will now become full-time, the source said.
"It really puts the company in an opportunity to compete in the market. It's not been a core business for GM for a number of years," the source said.
UAW spokesmen at the union's headquarters in Detroit were not immediately available for comment
GM has steadily sold off non-core assets the last few years to raise funds to cover its mounting pension and health care costs. Last year, GM raised more than $4 billion in cash and stock when it sold off its stake in DirecTV parent Hughes Electronics Corp., and about $1.1 billion from the sale of the bulk of its defense business to General Dynamics Corp. (GD.N: Quote, Profile, Research) .
Greenbriar and Berkshire Partners have worked closely together in the past, having jointly invested in Active Aero Group, an air cargo company, in 2000 and Hexcel Corp. (HXL.N: Quote, Profile, Research) , a maker of lightweight structures for the aerospace industry, in 2003.
The equity firms have earmarked more than $1 billion to acquire companies in the transportation sector, Berkshire said on its Web site.
Berkshire has acquired other railroad companies in the past, including Wisconsin Central Transportation Corp., New Zealand Rail and the rail freight operations of British Rail.
Private equity firms typically buy, upgrade and sell companies in a three to seven year timeframe, applying management skills to cut costs and expand their businesses.
© Reuters 2004. All Rights Reserved.
GM near deal to sell locomotive unit-sources
Tue Nov 23, 2004 03:57 PM ET
By Michael Ellis
DETROIT, Nov 23 (Reuters) - General Motors Corp. (GM.N: Quote, Profile, Research) is near a deal to sell its locomotive unit to two private U.S. equity firms, ending more than two years of negotiations, but any agreement is contingent upon a new union contract, sources familiar with the negotiations said on Tuesday.
GM agreed to the terms of a joint purchase agreement for its Electro-Motive unit with Greenbriar Equity Group, a $700 million equity fund run by former Chrysler Corp. Vice Chairman Gerald Greenwald, and Boston-based Berkshire Partners, a $3.5 billion buyout fund, said the sources, who asked not to be named.
"I think it's just a matter of time, days rather than weeks," for the deal to be announced, one of the sources said.
The deal is pending ratification by the United Auto Workers union on a new contract for the approximately 800 workers at Electro-Motive's operations in LaGrange, Illinois, the source added.
The source declined to give details of the terms, but said GM would sell the business for less than $1 billion.
Officials with GM, Rye, New York-based Greenbriar Equity and Berkshire Partners declined to comment.
Electro-Motive, which employs about 3,000 workers, is the world's largest manufacturer of diesel-electric train locomotives with operations in LaGrange and London, Ontario, Canada. It also builds diesel power engines for boats, oil rigs and power generators. GM does not disclose financial results for the company, which it has owned since 1930, but financial analysts said it has lost money the last few years.
UNION DEAL
The new union contract is expected to be similar to deals reached earlier this year at automotive parts suppliers Delphi Corp. (DPH.N: Quote, Profile, Research) and Visteon Corp. (VC.N: Quote, Profile, Research) , which allow the companies to hire new workers at a lower pay and benefit scale compared to current employees, one of the sources said. In addition, many employees who had been classified as temporary will now become full-time, the source said.
"It really puts the company in an opportunity to compete in the market. It's not been a core business for GM for a number of years," the source said.
UAW spokesmen at the union's headquarters in Detroit were not immediately available for comment
GM has steadily sold off non-core assets the last few years to raise funds to cover its mounting pension and health care costs. Last year, GM raised more than $4 billion in cash and stock when it sold off its stake in DirecTV parent Hughes Electronics Corp., and about $1.1 billion from the sale of the bulk of its defense business to General Dynamics Corp. (GD.N: Quote, Profile, Research) .
Greenbriar and Berkshire Partners have worked closely together in the past, having jointly invested in Active Aero Group, an air cargo company, in 2000 and Hexcel Corp. (HXL.N: Quote, Profile, Research) , a maker of lightweight structures for the aerospace industry, in 2003.
The equity firms have earmarked more than $1 billion to acquire companies in the transportation sector, Berkshire said on its Web site.
Berkshire has acquired other railroad companies in the past, including Wisconsin Central Transportation Corp., New Zealand Rail and the rail freight operations of British Rail.
Private equity firms typically buy, upgrade and sell companies in a three to seven year timeframe, applying management skills to cut costs and expand their businesses.
© Reuters 2004. All Rights Reserved.
I've checked with my contacts at EMD. They say this same story has come up every September for the last three years. The Union says EMD is sold, an announcement will be made at the end of October, by Thanksgiving at the latest, definitely by the first week of December, or by the Christmas Shutdown. Absolutely by the first week of January. But no further announcement ever comes out. This has happened in 2002, 2003 & now 2004. There is a Union meeting on December 4, but the only voting that needs to be done is the local contract which hasn't yet been agreeed on. The International union has already approved any sale - its in the 2003 union agreement.
Bottom line, this report is no different than the others so there is no imminant sale of EMD.
If Greenbriar meets the price, GM will sell. They haven't, so there is no sale. The EMD people said the Caterpillar deal was closer, but when Cat's Unions rejected the management offer last spring, Cat realized it would be too hard to integrate the EMD into the CAt operations since the EMD unions already stated their opposition to any buyout by Cat. With their own plants so unhappy, so Cat dropped the purchase (for now) until things get a little better in their own house.
Bottom line, this report is no different than the others so there is no imminant sale of EMD.
If Greenbriar meets the price, GM will sell. They haven't, so there is no sale. The EMD people said the Caterpillar deal was closer, but when Cat's Unions rejected the management offer last spring, Cat realized it would be too hard to integrate the EMD into the CAt operations since the EMD unions already stated their opposition to any buyout by Cat. With their own plants so unhappy, so Cat dropped the purchase (for now) until things get a little better in their own house.
I agree with Quiet Guy. EMD is not sold today and I doubt within the next 90 days. Greenbriar is not going to say a thing and EMD is just going to give "general" information like "we are in negotiations with so and so" until something does happen. I have gone thru this for years and am tired of it.
No one at EMD has any more idea of what is going to happen than anyone else. The sale of a GM division is not made by anyone at that division level but by the big wigs in Detroit that do not talk. If you want to see how this will play out, do some research on how GM spun off Delco, Rochester, Detroit Diesel, Defense, GMC heavy truck, Terex, etc, etc, etc, etc, etc. The division affected has no say in this and can only react to Detroits decisions. Salary and Union employees who are smart enough to think before they speak know this.
Yes, EMD will eventually be sold. So will most every other heavy manufacturing concern at some point in time. That is business and free enterprise. To say it will be Greebriar within 90 days is rspeculation from some internal busy body regardless of what Reuters or any other "legitmate" news source may say. Interesting point is that the news agencies never name a source other than "an unnamed source within the company". Heck, that could be anyone from the general manager to the contract guy that fixes the leaks in the roof...which is a moot point because they both are out of the loop anyway.
If the general manager of EMD wants to stop or complete a sale of his GM division, do you really think he has the power to do so? Can a senator, with only the help of his underlings, send troops off to war or bring them home?
Think before you react.
No one at EMD has any more idea of what is going to happen than anyone else. The sale of a GM division is not made by anyone at that division level but by the big wigs in Detroit that do not talk. If you want to see how this will play out, do some research on how GM spun off Delco, Rochester, Detroit Diesel, Defense, GMC heavy truck, Terex, etc, etc, etc, etc, etc. The division affected has no say in this and can only react to Detroits decisions. Salary and Union employees who are smart enough to think before they speak know this.
Yes, EMD will eventually be sold. So will most every other heavy manufacturing concern at some point in time. That is business and free enterprise. To say it will be Greebriar within 90 days is rspeculation from some internal busy body regardless of what Reuters or any other "legitmate" news source may say. Interesting point is that the news agencies never name a source other than "an unnamed source within the company". Heck, that could be anyone from the general manager to the contract guy that fixes the leaks in the roof...which is a moot point because they both are out of the loop anyway.
If the general manager of EMD wants to stop or complete a sale of his GM division, do you really think he has the power to do so? Can a senator, with only the help of his underlings, send troops off to war or bring them home?
Think before you react.
looks like all the speculation might be coming to an end. This is off of Reuters -
http://www.reuters.com/newsArticle.jhtm ... ID=7294646
http://www.reuters.com/newsArticle.jhtm ... ID=7294646
I spoke with some very insided sources at a very large diesel engine manufacturer today - soures not to be revealed because they are my important customers - that said the deal was sealed up. Unfortunately for me, they are not buying EMD themselves. Anybody here work for EMD?
The new Acela: It's not Aveliable.
