Eastern Railroad Discussion > EMD shipping certain production to Mexico?

I've heard a rumor that London will be shipping SD production to Mexico. Any truth to this? I know in the '90's, BN 'MAC's were assembled in Mexico due to lack of space in London. Is this a temporary solution or a future trend? Unofficially, EMD has about 400 SD70ACe's on order from UP, BNSF and KCS, so I guess it makes sense to keep deliveries current.

It's not been uncommon for EMD to contract assembly elsewhere... even Mexico.

Bombardier Mexico assembled 267 of UP SD70Ms...

http://www.emdiesels.com/en/locomotive/international/jt56ace/index.htm

I presume they are setting up production in China for the US market.

TrackOne Wrote:
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> I presume they are setting up production in China
> for the US market.

Don't be ridiculous. Shipping any sort of processed steel products to the US from overseas makes little sense because the labor inputs are much less than the material inputs and overseas transportation costs. This is why foreign car manufacturers have rushed to set up auto/truck factories in the US for the US market, and why the US imports little in the way of finished steel (as opposed to unrolled slabs, which are cheaper to import and process than imported iron ore pellets).

TrackOne Wrote:
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> >
> I presume they are setting up production in China
> for the US market.


Did you bother to RTFP?

No, this for domestic SD production. With the exception of a few prototypes, the Chinese order will be built in China.

Robbman Wrote:
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> TrackOne Wrote:
> --------------------------------------------------
> -----
> > >
> > I presume they are setting up production in
> China
> > for the US market.
>
>
> Did you bother to RTFP?


Okay that was funny...........

Didn't Altoona do some assembly for EMD or GE for a time?

abyler Wrote:
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> TrackOne Wrote:
> --------------------------------------------------
> -----
>
> > I presume they are setting up production in
> China
> > for the US market.
>
> Don't be ridiculous. Shipping any sort of
> processed steel products to the US from overseas
> makes little sense because the labor inputs are
> much less than the material inputs and overseas
> transportation costs. This is why foreign car
> manufacturers have rushed to set up auto/truck
> factories in the US for the US market, and why the
> US imports little in the way of finished steel (as
> opposed to unrolled slabs, which are cheaper to
> import and process than imported iron ore
> pellets).

Let me be rediculous: http://www.iht.com/articles/2006/10/26/bloomberg/sxford.php

Pj Wrote:
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> Didn't Altoona do some assembly for EMD or GE for
> a time?


Yes... so did/does Super Steel, Alstom, the above mentioned Bombardier. Not %100, but ITS (VMV) assembled a few SD70M-2s as well...

TrackOne Wrote:
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> Let me be rediculous:

Once again, read the article. Parts do not equal cars. The vehicles being assembled there are usually for Chinese domestic consumption, not for US import.

-Justin

bnsfjth Wrote:
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> TrackOne Wrote:
> --------------------------------------------------
> -----
> > Let me be rediculous:
>
> Once again, read the article. Parts do not equal
> cars. The vehicles being assembled there are
> usually for Chinese domestic consumption, not for
> US import.
>
> -Justin

Ford is importing 10 percent of their parts from China and plans to increase it. GM is importing parts. Skilled labor is 10 percent of USA costs. In order to sell in China's market one must establish factories there. We play by their rules. They learn to make every part and then they will eventually produce the entire product in China. They have millions of people waiting for jobs and we are sending them the orders one factory at a time. The Chinese are finishing up three Gorges Hydro Dam. This is the worlds largest hydro dam and it will produce plenty of cheap electric power for PLA factories and those coming on line in the future. We are going to see a flood of products from China.

http://www.ft.com/cms/s/b355aaee-a40e-11db-bec4-0000779e2340.html

TrackOne Wrote:
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> Skilled labor is 10 percent of USA costs.
> In order to sell in China's market one must
> establish factories there. We play by their
> rules....... We are going to see a flood of
> products from China.

Welcome to the global economy. We've been seeing a flood of Chinese and other Far Eastern products for years now.

-Justin

Say what you want about GEs, bash them to pieces if you will. Bottom line...THEYRE BUILT IN THE USA !!!!!!

cpvo Wrote:
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> Say what you want about GEs, bash them to pieces
> if you will. Bottom line...THEYRE BUILT IN THE
> USA !!!!!!

And Canada is sooo bad... right?

-Justin

GM when it owned Electro-Motive had a falling out with Super Steel in Schenectady(Scotia, NY), so unless the new firm, EMD, negotiates another deal, no EMD's will be built there. Currently they are assembling UP gen sets.

How did China get into this discussion about US diesels being assembled in Mexico? All I intended to find out is if anyone could confirm or deny this rumor.