Electro-motive division sold

A long period of industry speculation came to an end recently when General Motors Corp. announced that it had reached a definitive agreement to sell its Electro-Motive Division (EMD) to the investor-led group of Greenbriar Equity Group LLC and Berkshire Partners LLC. The proposed sale is contingent on completing negotiations with the United Auto Workers Union (UAW) and the subsequent ratification by its members. Terms of the transaction, which was expected to close in the first quarter of this year, will not be disclosed.

The sale agreement covers substantially all of the Electro-Motive businesses, including North American and international locomotives; power, marine and industrial products; the spare parts and parts rebuild business; and all of Electro-Motive's locomotive maintenance contracts worldwide. The LaGrange, Ill., and London, Ontario, Canada, manufacturing facilities are also included in the agreement. At the time of this writing, there were no plans announced for any changes to the company or its structure.

"Greenbriar and Berkshire Partners have a long-term commitment to creating value in the railroad industry that extends back to the 1980s," stated Reginald Jones, a managing partner of Greenbriar Equity Group. "Electro-Motive has outstanding products, employees and a truly global franchise, and we believe the company's prospects are bright."GM is pleased to have Greenbriar and Berkshire Partners acquiring the company," said William Happel, GM vice president and general manager of Electro-Motive. "These groups have a long-established reputation for excellence as rail industry investors and financiers. As an independent company with access to the resources of the new owners, Electro-Motive will be well positioned to continue to service its customers and grow the business."

Electro-Motive diesels have hauled freight and passengers, powered ships and generated electricity around the globe. The company is one of the largest builders of diesel-electric locomotives for all commercial railroad applications including intercity passenger, commuter, freight, switching, industrial and mining. The company also offers locomotive services including maintenance, management, leasing and training.

In the North American market, the company offers its SD70M-2 and SD70ACe freight locomotives. For the international markets, the company offers products such as its GT46MAC, JT42CWR and JT42HW-HS locomotives for use in applications such as heavy-haul freight and passenger trains. The company is operating and has certification for its JT42CWR Series 66 locomotive in the United Kingdom, Germany, Netherlands, Belgium, Sweden, Luxembourg, Norway, Denmark and Poland, and is targeting Czech Republic, Italy and France for certification. The company also offers its GP20D switcher locomotive.

Along with its new, more powerful, four-stroke, 16-cylinder H-Engine, the company has introduced other innovations to the rail traction market. These include the EMD automatic engine start/stop system designed to conserve fuel and reduce emissions, its functionality integrated railroad electronics (FIRE System) which is an advanced system designed for locomotive management, its radial truck body for drive wheels, and also its IntelliTrain remote monitoring and diagnostics system to give railroads live data concerning the status of their locomotives.

In addition to rail traction, GM EMD provides diesel engines for marine propulsion and generator set applications, offshore and land-based oil well drilling rigs, and stationary power generation worldwide. The line of engines includes the two-stroke, 45[degrees] Vee, 645 and 710 series diesel, as well as the new four-stroke, 45[degrees] Vee, H Series diesel engine.

The 645 is available in 8-, 12- and 16-cylinder versions with a Roots blower and in 8-, 12-, 16- and 20-cylinder turbocharged versions. The 710 Series is available in turbocharged versions of 8-, 12-, 16- and 20-cylinders. The H Series is available in a turbocharged 16-cylinder version. The EMD engine range covers outputs of 800 to 6000 hp.

The company's headquarters, engineering facilities and parts-manufacturing operations are in LaGrange. Final assembly is conducted at the plant in London from which products are exported to customers around the world.