Western Railroad Discussion > Will Komatsu buy GE locomotive division?

I've heard a rumor on facebook that Komatsu is interested in buying the locomotive division of GE. Is it true? Since CAT is the owner of EMD, we can have an interesting competition coming soon.

Pedro

Posted from Android

Pedro Rezende
Vespasiano MG,

That's just what we need....the Japanese buying GE! I couldn't even fathom how ugly those locomotives would be!

Ugly? Think about the names. The "Z" car is called the "Fair Lady" in Japan. My friend had a Toyota "Fresh Advance".

Yeah, but they run good.....

Would be interesting considering that Komatsu and CAT are bitter rivals in the crawler business.
I'm sure you'd see much more brand label connection from CAT on the locomotives.

Out

If it was on Facebook its gotta be true...

Well, GE and Konatsu have a joint venture and it isn't difficult to think that a new business will be done with them.

okrifan Wrote:
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> If it was on Facebook its gotta be true...

Posted from Android

Pedro Rezende
Vespasiano MG,
https://youtube.com/c/minasgeraisrailways1

What about Cummins Engine? They're putting their engines in Siemens locomotives. If they want into the locomotive marketplace so bad, what better opportunity is there, for them to do just that? Buy GE Transportation and they're in it big time. The question is, could they swing the deal financially?

Bob Callahan
Monticello, IN

Call me crazy, but what if GE TRANSPORTATION was purchased by:

--Warren Buffet?
--Roger Penske?

Buffet already owns the BNSF, and he could own the best engine maker currently in business.

Penske bought out the old DETROIT DIESEL, and brought it back to life with GREAT truck engines.  No one saw that coming, but he did it.

Would any European companies try to bid?

rcall31060 Wrote:
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> What about Cummins Engine? They're putting their
> engines in Siemens locomotives. If they want into
> the locomotive marketplace so bad, what better
> opportunity is there, for them to do just that?
> Buy GE Transportation and they're in it big time.
> The question is, could they swing the deal
> financially?

Cummins doesn't want to build locomotives, they just want to build diesel engines for locomotives. This is true for every market they build engines for, they make nothing but engines (and the exhaust after-treatment for them) To me this is a unlikely fit.

Someone else brought up Enpro (FM/ALCO) in another thread, while they are a bit more diversified than Cummins, its basically the same situation. Plus they are a fairly small company and I doubt have or could build the capital to buy GE Locomotive.

I figure this is who is really in the running.

1. Komatsu (GE transportation already works closely with Komatsu)
2. CRRC (If regulators allow it)
3. Alstom
4. Wabtec (another outfit GE has worked with in the past, Wabtec is a lot larger of an outfit than most folks realize and could easily take in GE Locomotive IMHO)
5. Siemens (I hope not)
6. Bombardier (The financial problems here might make this a moot point)

Have Elon Musk buy it. Just think how cool the Tesla logo would look!

Foamductor Wrote:
-------------------------------------------------------

> I figure this is who is really in the running.
>
> 1. Komatsu (GE transportation already works
> closely with Komatsu)
> 2. CRRC (If regulators allow it)
> 3. Alstom

No longer exists, they just sold out to Siemens.

> 4. Wabtec (another outfit GE has worked with in
> the past, Wabtec is a lot larger of an outfit than
> most folks realize and could easily take in GE
> Locomotive IMHO)
> 5. Siemens (I hope not)
> 6. Bombardier (The financial problems here might
> make this a moot point)

How about Hitachi, or the Korean builders?


http://www.hitachi-rail.com/

SOO6617 Wrote:
-------------------------------------------------------
> Foamductor Wrote:
> --------------------------------------------------
> -----
>
> > I figure this is who is really in the running.
> >
> > 1. Komatsu (GE transportation already works
> > closely with Komatsu)
> > 2. CRRC (If regulators allow it)
> > 3. Alstom
>
> No longer exists, they just sold out to Siemens.
>
> > 4. Wabtec (another outfit GE has worked with in
> > the past, Wabtec is a lot larger of an outfit
> than
> > most folks realize and could easily take in GE
> > Locomotive IMHO)
> > 5. Siemens (I hope not)
> > 6. Bombardier (The financial problems here
> might
> > make this a moot point)

The merger isn't until late 2018 if approved.

Posted from Android

Given the tax implications of a sale (does anybody have a good understanding of this that they could share?) I would expect to see it more likely spun off, probably as a joint venture. Some clarity may come from the Nov shareholder presentations, but probably not announcement of an actual deal, just admission they want to dump the unit.

https://www.cnbc.com/2017/10/26/ge-considers-exiting-railroad-business-report.html

Posted from Android

Pedro Rezende
Vespasiano MG,
https://youtube.com/c/minasgeraisrailways1

Perhaps this is all a ploy to attract the attention of our government to relax the Tier 4 (or more) emissions for new locomotives?

I dont see Komatsu with much cross intergration with GE locomotives, the manufacturing or parts distribution. I think Kawasaki Rail would have a better opportunity than Komatsu.

I see the logic the long battle of Komatsu vs CAT in heavy equipment but i dont see it going into rail.

I second Wabtec, as said bigger than most know.

Posted from iPhone

Heres another possibility, what if GE sold off its engine brands, assets and IP to Cummins /CMI? It would be a good fit for CMI who could pull that manufacturing and supply chain into cummins system. Take for example Cummins Mid South dealership is cummins and GE engine dealer, as cummins is light in large engine options above 120 liters, GE could fill that void.

Also Waukesha and Jenbacher brands that GE owns could go to cummins, that could be adventagous for CMI. CMI isn't a serious contender in the gas engine market, GE-Jenbacher is well known in the power generation industry.

Posted from iPhone

Selling off the GE Transportation in parts to several buyers could address a number of needs. That's what current CEO Flannery did with GE-Healthcare when he dismantled that business.

It also allows you to get top dollar for the pieces buyers want, and then wind down the rest. You avoid the discount buyers apply when they have to buy stuff they don't want to get the pieces they do want.