GE & WABCO Merger


max diyer

max diyer

Well-Known Member
As of Feb. 2019, GE Transoportation and Westinghouse Air Brake have merged. The new name is Wabtec. Headquartered at Wabco's offices in Wilmerding (E. Pittsburgh) PA. The majority of GE locomotive assembly is being moved from Erie, PA to Ft. Worth, TX.
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One other news story:
CN has been buying up struggling railroads in the U.S. for sometime.
They announced recently that they're in the market to buy a Class 1. CSX and Norfolk Southern are in their sites.
I didn't research the numbers (yet), but I would venture a guess that it would make CN, the largest railroad on the continent!
 
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bnsf971 said:
Personally, I have a problem with a company owned by a foreign governemnt, even a friendly one, owning a major component of our rail transport system.
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While they retain the name CN, is no longer a Crown Corporation. It is a Publicly Held Corporation based in Montreal, PQ. That change was made before they merged with the IC. The late Hunter Harrison was the CEO of the IC at the time of the merger, and became CEO of the CN after the merger was completed.

Jim writes :"CN has been buying up struggling railroads in the U.S. for sometime.
They announced recently that they're in the market to buy a Class 1. CSX and Norfolk Southern are in their sites.
I didn't research the numbers (yet), but I would venture a guess that it would make CN, the largest railroad on the continent!"

I wouldn't call the IC a struggling railroad, the IC provided CN with direct access to the Gulf Coast Ports. CSX and NS are not struggling, by any means.

The name of the game is "Synergy", which loosely interpreted means one can do it cheaper than two. CN is already the largest and only true Transcontinental railroad in Canada, and they may be looking to diversify their traffic mix and enhance revenue, and access to "warm weather" Atlantic Ports.

I would imagine that the CP may also be looking for a partner, and if they put sufficient loonies on the table, they may find someone to dance with.

KCS is an interesting candidate, because of their single line system accessing markets below El Supremo's Barrier. The perfect NAFTA connection.

GE sold off their locomotive division to WABCO due to completely inept management of GE under Jeffrey Immelt, who nearly destroyed the Empire Jack Welch built. Moving from Erie to Ft. Worth TX is strictly a cost containment, (union busting), move. The locomotive division was hurt by the surplus of motive power caused by sudden demise of "King Koal".
Boris

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Terry - I also have a problem with a foreign entity owning a major component of our rail system.

Boris - Thanks for the reply and clarification. Your expertise is appreciated!
In a attempt to condense my post (I was using a smartphone and find it difficult to message/post) I unfortunately
misused the term "struggling". IC wasn't and CSX, NS aren't struggling. I just don't care for a foreign company
to own a large portion of our rail system.

I agree that GE's sell-off was a move to save their self-inflicted down-spiralling. Wabtec did the Erie/Ft. Worth
transfer as a union busting measure. I have a personal interest in GE Erie and don't care for the down-sizing and
inevitable closing.
 
max diyer said:
I just don't care for a foreign company
to own a large portion of our rail system.
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Jim: For what it's worth, neither do I. Without turning this into a political rant, I want to point out that as a Nation, we are already too committed to Internationalism, for my comfort. Having said that, I do my banking at Toronto Dominion Bank, and across Highway 9 from TD Bank, is Santander Bank (Spain). Too many of our businesses are owned or controlled by foreign companies. Why do I deal with them as opposed to Wells Fargo, or Bank of America? Simply stated the US based banks screw you over with stupid fees. Plus, I'm not really sure these "American" institutions are actually controlled by Americans.

max diyer said:
I agree that GE's sell-off was a move to save their self-inflicted down-spiralling. Wabtec did the Erie/Ft. Worth transfer as a union busting measure. I have a personal interest in GE Erie and don't care for the down-sizing and
inevitable closing.
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I understand. I don't like disrupting loyal long term employee's lives for the sake of saving a few bucks, like WABCO is doing. I believe that is a crappy way of doing business. But the folks running the company don't give a damn. I ended up in Jersey, because of Conrail's "downsizing". it's not pleasant.

Boris
 
Did the sale of GE Transportation include the diesel engines, or will Wabtec be buying these from GE yet?
 
The entire locomotive division was sold to WABCO. GE is out of the railroad business. WABCO is moving the operation from Erie PA to Ft Worth TX.

Boris
 
NCRC5315 said:
Where the diesels part of the locomotive division, or were they separate?
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The engine plants were part of GE Transportation.
It was sold to Wabtec in the deal. Right now,
the Erie locomotive (union) plant is engaged in a 90 day back to work agreement. The 2 (non-union) engine plants in Grove City PA, as far as I can determine are still in full operation. There is very little online information about the Grove City engine plants.
 
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