Jump to content
Sign in to follow this  
BCL

What if General Electric sells off its transportation division?

Recommended Posts

http://www.chicagotribune.com/business/ct-biz-ge-transportation-20171113-story.html

 

Just curious how they would handle it. They would probably need a name change because they didn't adopt a separate name like GM did with EMD. Also - the transportation division was integrated with power generation, since a diesel-electric locomotive is essentially a generator on wheels.

Share this post


Link to post
Share on other sites

The Transportation Division of GE (86% of its revenue comes from Locomotives and rail related services) is and has been for quite a while, quite separate from GE Power, which was previously part of GE Energy (which recently got divided three ways into GE Power, GE Gas and Oil, and GE Energy Management). GE. Power is still strategic for GE while the Transportation Division, which accounts for only 4% of GE's revenue, is not.

 

I think the organizational structures for effecting such a spinoff are already in place, and organizationally it should be very easy for them to hive off and sell GE Transportation. I am sure some branding outfit given a few million dollars will find no difficulty in coming up with some nondescript sexy name for it too, should such a need arise.

Share this post


Link to post
Share on other sites

Sad to see iconic American industrial giants shriveling away, but that's progress, I guess....wonder if someone like Siemens would buy their rival's locomotive business? Or some other foreign investor....doubt if any domestic investor would....

Share this post


Link to post
Share on other sites

Sad to see iconic American industrial giants shriveling away, but that's progress, I guess....wonder if someone like Siemens would buy their rival's locomotive business? Or some other foreign investor....doubt if any domestic investor would....

I would not consider shedding an unit that has low margin 4% of the total revenue in and of itself shriveling away.

 

Of course there are other serious issues with GE, which had gotten seriously bloated over the years, that need addressing too.

 

Siemens itself won’t deal with railroad stuff since it is busy spinning off its rail operations into Siemens-Alstom. This new outfit might pick it up though. But either way, it may be a bumpy ride.

 

 

Sent from my iPhone using Amtrak Forum

Edited by jis

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

×