So long EMD... it's been good.

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V&AL

Fred's Loco Shop Foreman
http://www.streetinsider.com/Mergers+and+Acquisitions/Caterpillar+%28CAT%29+Subsidiary+Announces+$820M+Acquisition+of+EMD+from+Berkshire+Partners+LLC/5687572.html

Caterpillar (in the guise of Progress Rail a Cat subsidiary) is buying EMD...
 

Beachbum

Member
Maybe in the long run it's better that EMD be spun off from GM, given the current economic realities. Maybe not. Cat's weathered a couple nasty downturns over the years. I can't guess what might happen to GM eventually.

McCook used to be a great place to spy out what EMD was producing. I applied for a job there many years ago but unfortunately (or maybe fortunately) didn't get an offer.

Just some random ramblings...
 

railBuilderDhd

Active Member
From what I understand GM spun-off EMD some time ago and now CAT is buying it. I look forward to seeing the yellow and black CAT EMD demo. Maybe it'll be a EMD 100 or something like that.
Dave
 

UP2CSX

Fleeing from Al
This is a good move for Cat, since they are already big-timers in the rebuild and repower business. Berkshire Partners have not been good managers for EMD and have grown weary of the steep decline in sales and profits over the past two years. At least Progress Rail knows the business and is interested in expanding into the new sales market. I wonder which demo will get a black and yellow scheme? :)
 

NH Mike

CEO & Wheel Cleaner
When GM owned it EMD was for Electro Motive Division ( of GM naturally ). The new company kept the EMD but changed the name to Electro Motive Diesel, probably to keep the familiar EMD for brand recognition.

Cat has been involved with locomotive builders for ages and more recently as a provider of gensets for various builders and rebuilders. Might be in the back of Cat's mind to further expand their genset offerings with a major locomotive brand that they actually own. Otherwise I have to wonder why in the present economy Cat would stretch out far enough to buy a major locomotive manufacturer when the railroad industry is suffering the same or worse as everyone else. Just a guess on my part.

Whatever the reason I hope it turns out all highballs and clear running for Cat and the entire industry.
 

UP2CSX

Fleeing from Al
Well, CAT stock owners like the idea, since it finished up 25 cents today. This is unusual, since the acquiring company almost always experiences a dip in stock price until the acquisition is digested. At $820 million, Cat is getting EMD at less than half of 2009 revenues, and 2009 was a lousy year. I think Cat has the cash and knew a good deal when they saw it.
 

diburning

AlcoHaulic
CAT operates in the rail market as Progress Rail.

So now maybe we'll see it rebranded as Electro Motive Progess Rail?

Or... EMD PROGRESS :D

Theres two things that CAT can do though. They could take EMD and develop it to make EMD a better competitor against GE, or they can take the technology, discontinue EMD, and use the technology and brand it as Progress Rail.

They'd do the first option if they feel like it is a good investment, and they'd do the second one if they're trying to eliminate competition to stay alive.
 

kenw

5th Generation Texian
a large part of the value of EMD is the name. Railroaders know it, and they still have a lot of goodwill in the industry (railfans' opinions don't count...)

My $$ (and not worth too much) says the name EMD is going to be around for a long, long time. Caterpillar is a great company and knows how to make things work over time. Sure, they've lost share in the construction equipment business, but that's why they are diversifying. Not too far from home, but into an industry in which they can compete without having to learn it all from scratch and still represents a different-enough market to spread themselves out a bit. Experience with Progress Rail gave them some insight and valuable lessons. Now they're ready to step it up a notch.

We ALL need them to succeed.
 

Charles Smiley

cspmovies
Cat had their diesel engines in some old GE industrial/switchers long ago. GE worked with lots of other vendors (like ALCO) until they graduated into the diesel big leagues around 1960 with the "U" series road diesels.

Now maybe it's Cat's turn. They are also adept in export sales.

This may be good for the USA and its workers. I'm just glad EMD wasn't bought up by the People's Republic of China - ugh!
 

cajon

Active Member
IF CAT makes any changes in the EMD design & components used, It will be a long time coming. The rapid kind of changes being assumed here are just "Fig Newtons" of the imagination. LOL
 

Charles Smiley

cspmovies
QUOTE: "changes in the EMD design & components used"

True. The marketing & sales tactics will be changed long before the hardware -- if it's like any company I ever worked for.
 




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