European Railroad Discussion > [FR] GEC-Alsthom to Alstom?

This interesting subjects seems to surface every now and then: GE and Alst(h)om were cooperating closely at the turn of the millenium. Then, something happened and roads split. Was this due to cultural or economical interests would be interesting to know. It seems to be easy to find information on what happened but not why. 

If you can remember why this split happened, or even why the companies started cooperation, please post your thoughts. It might lead back to track to find out on the subject!

Pictures are of GEC-Alsthom TGV-Duplex (200 series train), praised super high speed train at the time. 


 

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Alsthom (now Alstom) bought GEC out in 1998 when GEC were restructuring their business (and renaming themselves Marconi) acquiring companies in the electronic-defence industries which would eventually be their downfall (they spent too much, too unwisely). Sad end to a once proud multi-national.

That was quick! Great to have British aboard this discussion board! Thank you for a clear explanation on the different ambitions within the company. And the unfortunate end on risk taking during the boom around millenium.

I also noticed my error: General Electric Corporation is a different company from General Electric. How confusingly near the names are...

Still makes me wonder why GE (this time the huge American company) bought Alstom power industry in the summer but left the trains alone. Their product portfolios would had neatly matched, unless there are some other substantial differences that would cause such a merger be stupid. Any ideas what those could have been? This merger could have given GE a kick start to European markets with ever growing demand for EMUs.   

A few more TGV-Duplex pics.

 

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A short history of GEC you will find in Wikipedia.

And interesting in my mind is that GE bought the Jenbacher Werke and Jenbacher ceased the railroad business. They had MU´s and freight cars in production.

Another curious: Jenbacher built Diesel engines with 2 stroke Diesels while its Austrian competitor SGP fitted it with 4 stroke Diesels. GE the owner of Jenbacher fitted its engines with 4 strokers while GE's competitor EMD had 2 strokers.

Erwin from Austria

 



Edited 1 time(s). Last edit at 01/20/16 15:23 by spandfecerwin.

The powerplant in the class 70 was originally a Jenbacher gas engine. Incidentally at one time in the 1980s GEC owned Alco!

Oh, I thought Jenbacher still manufactured the class 70 prime movers...

Here is another, much older vehicle from Jennbach, but not built there.

To the original question (I'm not loosing hope for an answer): why did the GE leave rail division to Alstom and digested just the power plant division? 
 

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McKey Wrote:
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>
> To the original question (I'm not loosing hope for
> an answer): why did the GE leave rail division to
> Alstom and digested just the power plant
> division? 

Because the French Government would never have approved it. Plus GE did not want to get involved in the Passenger market, and they saw that Alstom's electric locomotive sales were miniscule now. Other than the initial order by SNCF Fret and a few orders by Leasing Companies no Prima locomotives have been built in 4 - 5 years. The Prima locomotives were built too closely to SNCF specifications.  

Makes sense.

However, doesn't GE also have a chance to make very successful electric locomotives based on knowhow in U.S. locomotion?

No point acquiring French pride Alstom, if the focus is outside passenger equipment though.

McKey Wrote:
-------------------------------------------------------
> Makes sense.
>
> However, doesn't GE also have a chance to make
> very successful electric locomotives based on
> knowhow in U.S. locomotion?
>
> No point acquiring French pride Alstom, if the
> focus is outside passenger equipment though.

Also, the only GE rail segment to go to Alstom was the signalling division.  They kept locomotives.  GE has a long history of electric locomotives, but left that market in the 1980s.

McKey Wrote:
-------------------------------------------------------
> Makes sense.
>
> However, doesn't GE also have a chance to make
> very successful electric locomotives based on
> knowhow in U.S. locomotion?
>

How do you make that deduction??

Easy:
- GE has almost 100% market share of U.S. locomotives for the time being. GE is also a huge electric manufacturer with exceptional know how.
- All new locomotives are AC electrics, basically the same base as any modern electric locomotive has these days. Deduct the prime mover and add equipment for power intake, that is it!
- It is not important according to my opinion where the power comes but how you use it efficiently.

chs7-321 Wrote:
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> How do you make that deduction??

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Amtrak on the other hand have placed their electric future in the hands of Siemens, not GE.

Good argument for U.S. use. I think for larger market consideration we might need to make much more complicated drawing of possible scenarios. However, I would not say GE would be a weak player in electrics, quite the contrary.