Eastern Railroad Discussion > GE will sell its loco business

GE CEO, John Flannery announced yesterday it will focus on aviation, health care and power plant business.Looks like a sale to Siemens? New owner(s)will go non-union most likely to cut costs. Don't know what will happen at Erie. Albany's Times Union is this source.

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Edited 1 time(s). Last edit at 11/16/17 09:34 by darkcloud.

This has been discussed on here for about 2 months. When you sell off /spin off all your other divisions ie NBC, GE Capital, GE water, GE "industrial", GE Appliances, whats left. When times are tough which GE has been the lowest performing industrial stock in the DOW this year, what divisions are left? The Locomotive business is 'low hanging fruit.' GE wrote the book on six sigma, so I don't think this is an opportunity to improve the business, infact a buyer could learn something from it.

I think a buyer is someone who is an established railroad producer who could use the manufacturing capacity. Maybe they will break up the locomotive business, could keep the engine manufacturing or sell it to multiple buyers. I say this because GE is very intent on power generation, they may see the engines apart of the core business in power generation and renewable energy and look to hang onto it.



Edited 1 time(s). Last edit at 11/14/17 09:56 by Entropy.

Keep the diesel engine business and go head to head with Caterpillar? Doesn't look like a sound "be the best in your category" strategy to me.

Does GE have a substantial stationary diesel business today?

march_hare Wrote:
-------------------------------------------------------
> Keep the diesel engine business and go head to
> head with Caterpillar? Doesn't look like a sound
> "be the best in your category" strategy to me.
>
> Does GE have a substantial stationary diesel
> business today?

When they say Power it is the Turbine business.

march_hare Wrote:
-------------------------------------------------------
> Keep the diesel engine business and go head to
> head with Caterpillar? Doesn't look like a sound
> "be the best in your category" strategy to me.
>
> Does GE have a substantial stationary diesel
> business today?

GE owns Jenbacher and Waukesha ; which are actually big names in Natural Gas/Bio Gas power generation industry.

Both companies do offer Diesel engines, not the strongest offerings, in addition to GE's V250 engine, stationary version of the GEVO engine , however they took Jenbachers P616 gas engine made itinto a Diesel and use it in GE's PH37aci sold internationally.

https://www.getransportation.com/marine-solutions/stationary-power



Edited 2 time(s). Last edit at 11/14/17 11:00 by Entropy.

The Waukesha power business upset a lot of folks in the political arena, up to Paul Ryan (R-WI). GE Power shut down the century old facility in Waukesha WI, moving 350 jobs to Canada.

GE contended that many foreign governments required letters of credit from a US sponsored export facility. Congress dithered about the Ex-Im Bank, so Waukesha moved the operation to Canada, where the government was happy to duplicate the guarantees.

Entropy Wrote:
-------------------------------------------------------
> march_hare Wrote:
> --------------------------------------------------
> -----
> > Keep the diesel engine business and go head to
> > head with Caterpillar? Doesn't look like a
> sound
> > "be the best in your category" strategy to me.
> >
> > Does GE have a substantial stationary diesel
> > business today?
>
> GE owns Jenbacher and Waukesha ; which are
> actually big names in Natural Gas/Bio Gas power
> generation industry.
>
> Both companies do offer Diesel engines, not the
> strongest offerings, in addition to GE's V250
> engine, stationary version of the GEVO engine ,
> however they took Jenbachers P616 gas engine made
> itinto a Diesel and use it in GE's PH37aci sold
> internationally.
>
> https://www.getransportation.com/marine-solutions/
> stationary-power

This group is considered part of Transporation vs Power Generation.  Maybe they will transfer it.

Depending on what GE decides to do with its Baker Hughes energy investment joint venture, these operations may be part of a package.