Watching the 10pm news here (in Peoria il) and was stated by NEWS25–
Catapillar has put in a bid to buy GM’s locomotive division and its Lagrane plat (or whats left of it) and all of the london plant!!! Alot of hurdles to go over but has anyone heard this as well or is it just me? Cat has preivois locomotive experience and GM has long wanted to get out of the locomotive business. Aren’t the GP15D and GP20D locomotives powered by CAT engines? There listed as GM products. This is a very intersenting proposion…
This is what CNBC had on the wire…it is indeed an interseting proposition if it goes through…
Caterpillar in talks to buy GM unit-union official
May 25, 2004 1:10:00 PM ET
By Michael Ellis
DETROIT, May 25 (Reuters) - Heavy equipment maker Caterpillar Inc. (CAT) has joined the bidding to buy General Motors Corp.'s (GM) locomotive unit but is facing stiff opposition from a Canadian union, a top union official said on Tuesday.
The head of the Canadian Auto Workers union, which represents workers at the GM Electro-Motive plant in London, Ontario, said he opposed Caterpillar’s interest because of its past labor problems.
“Caterpillar is now in the running. We’ve expressed our dissatisfaction (with Caterpillar) to both Caterpillar and GM,” Buzz Hargrove, president of the CAW, told Reuters.
A representative of Peoria, Illinois-based Caterpillar declined to confirm or deny the company’s interest in GM Electro-Motive, one of the world’s largest builders of diesel train locomotives.
“On any given day, Caterpillar may be in contact with a number of other companies about potential business opportunities, many of which never progress behind the preliminary discussion phase,” said Caterpillar spokesman Rusty Dunn.
A GM official declined to comment.
Two private equity funds have also been in joint discussions with GM to buy the unit, Hargrove and a source familiar with the talks said. The two are Greenbrier Equity Group, a $700 million fund led by former Chrysler Corp. Vice Chairman Gerald Greenwald, and Berkshire Partners, a $3.5 billion buyout fund.
Electro-Motive also builds diesel power engines for boats, oil rigs and power generators, and is based in LaGrange, Illinois. GM does not disclose financial results for Electro-Motive, but the source familiar with the talks said it is losing money.
LABOR TROUBLE
Caterpillar’s shutdown of a plant in Ontario mo
The IAIS goes right by one CAT plant just north of Peoria. They could use a few new engines on the IAIS, for sure…
Since CAW has put in a bid too, why not break up the GM like Conrail so they can have CAT-CAW? Mookie will be quick to comment on my bad pun… (The real mookie may roll her eyes…)
Mookie nearly tore up her puter trying to open this one when she saw CAT. But even silly Mook had heard this one. Been waiting to see what developed.
You are right - that is a seriously bad pun![V]
…Seems to me GM has wanted out of the Locomotive building business for some time now and perhaps it’s finally coming to a head. So many directions for GM in the past few decades almost like they couldn’t make up their mind what they wanted to do…From the conversations I’ve seen on here about their products from RR people it sounds like they have a good product but just didn’t want to really put in the effort [and or money], to continue…Wonder why.
One major problem if CAT does take over - all the locos they make will come in one colour only - CAT yellow. LOL
So it’ll be prepainted for a UP-CSX merger…Yellow with a cat!
Cndtr: What are you Riding?
Engnr: Just a CAT!!
LOL LOL LOL LOL LOL LOL LOL LOL LOL LOL
LOL![:D]
I’d love to see a SD-80 in CAT paint. It would look pretty tough.
Do you think that they’ll offer locomotives with 6 way blades on the front, front end loader attachments, dump boxes, ripper teeth for the back, etc?
Maybe they’ll change the nomenclature to classify their locomotives…
All of the model names will have a D-9 in front of them.
I think we’ll be lucky if they offer them with flanged wheels.[swg]
I don`t understand why GM is so intent on selling, they have a lot of history and a good product. I think CAT buying them might not be the best move. After all, except for smaller applications their past interests in entering the locomotive market have been relatively unsuccesful.
This may give railroads a new business opportunity- Rail served building and road construction!
LOL
I guess I must have been hiding under a rock!!! I have a bad feeling about this. I bet the first thing CAT does is drop the EMD 710 engine for their own and that will be the beginning of the end
Simple!. Caterpiller continues the EMDcarbody, picks up on EMD Software, continues The Electro-Motive Division of Caterpillar (yea, I had to stop and think 'bout that one), and sells the EMD prime mover back to Dietroit Diesel Division, 'cause what would the world be like without that two-cycle humming bird. The high pressure-fuel-injection, precision UAW built-in the-United States of America CAT Diesel Power Rules the world anyway! Enjoy PuuuuuuuuuuuuuurrrrrrrrrffffffffffeeeeeeeeeeCttttttiiiiooonnnn!!! ACJ.
Allen,
Detroit Diesel is now owned by (German) Daimler Chrysler and is a part of MTU. Many of their larger engines, the 2000, and 4000 series, are built in Germany. The EMD engines have only ever been built at La Grange, haven’t they? I don’t believe any engines were ever built in London (although some may have been built in Cleveland in past years). On the other hand, I thought CAT built some of their smaller engines in Asia, and the biggest engines, the 3618 series, are only built in Spain by an associate. CAT uses a patented fuel injection system called HUEI (for hydraulically actuated electronic unit injection) which eliminates high pressure lines. Detroit and MTU are the guys pushing the high pressure “common rail” system which could be dangerous if mistreated.
And shouldn’t there be at least one “c” in perfection, even if a CAT is pronouncing it?
I would say that the 265H (265mm bore) is much more at risk than the 710. the 3600 series is 270mm in bore, pretty close to the H series, while the 710 has such a large user base they will have to keep making spares (at least) for years.
All of this based on CAT actually buying EMD - it’s not yet definite. But the CAT purchase might be better than the organisation going away or being run by people who don’t know the industry! There are rumours about MAN B&W selling Ruston Paxman, and of Rolls Royce buying MTU and DD. Let’s hang in there and watch!
Peter
I get a little lost in all the alphabet being passed around, but seems to me that Mr Blysard works with the MK1500 and aren’t they CAT engines? Someone will correct me if I am wrong - but he seems to think very highly of those engines.
Unfortunately all my engine info is at home and I am here and well, I just know all you will straighten me out!
Mook
Yeah, they have CAT engines. If this EMD/CAT thing happens MPI (the maker of MK1500’s, MK5000’s ect) will really be the loser.
ive worked with caterpillar. they make the best heavy machines in the industry. so if they buy emd, the product will just get better… we might finally see the sd100 thats 10 years late!!! in 10 to 20 years cat plans to make everything in mexico, s. america.thanks to the unions with high wages, high absenteeism, protecting the lazy do nothing employee and the union officials stealing us workers money. and much more. unions are good in safety and other sources but can be corrupt as the co. they rep. too bad, so sad. the world is getting worse.