Is Corvette division next up for sale?????

Probably not....with so much of the Caddy and C6 parts interchange, but the General IS selling off one of its very large divisions......

From "Trains" magazine web site, a GM industry wide Press Release... a verbatum copy....

[ Copied here in full, with citation of source and authorship ]

"GM Agrees To Sell Electro-Motive Division

DETROIT - General Motors Corp. (NYSE: GM), Greenbriar Equity Group LLC and Berkshire Partners LLC today announced that they have reached a definitive agreement in which GM will sell its Electro-Motive Division (EMD) to an investor group led by Greenbriar and Berkshire Partners. Terms of the transaction 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. Both the LaGrange, Illinois and London, Ontario manufacturing facilities are included in the agreement.

The proposed sale is contingent on completing negotiations with the United Auto Workers Union (UAW) and the subsequent ratification by its members. The transaction is expected to close in the first quarter of 2005.

"Greenbriar and Berkshire Partners have a long-term commitment to creating value in the railroad industry that extends back to the 1980s. Electro-Motive has outstanding products, employees and a truly global franchise, and we believe the company’s prospects are bright," stated Reginald Jones, a managing partner of Greenbriar Equity Group.

"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 employs approximately 2,600 hourly and salaried people. The company designs, manufactures, markets, sells, and services freight and passenger diesel-electric locomotives and diesel marine and power generation products for use worldwide. Since the early 1930’s, Electro-Motive and its associates have produced more than 58,000 diesel-electric locomotives for customers in 73 countries. Electro-Motive diesel engines are used in over 100 countries worldwide. Additional information may be found at www.gmemd.com.

General Motors, the world's largest vehicle manufacturer, employs about 325,000 people globally. Founded in 1908, GM has been the global automotive sales leader since 1931. GM today has manufacturing operations in 32 countries and its vehicles are sold in 192 countries.

Greenbriar Equity Group LLC is focused exclusively on making private equity investments in the global transportation industry, including companies in freight and passenger transport, commercial aerospace, automotive, logistics, and related sectors. Greenbriar and Berkshire Partners LLC have entered into a strategic joint venture and co-investment agreement to address transportation and related investment opportunities. Greenbriar manages $700 million of committed limited partner capital and co-investment commitments and, together with Berkshire, has access to more than $1 billion for investment in privately negotiated equity investments within the transportation industry. Additional information may be found at www.greenbriarequity.com.

Berkshire Partners has invested in mid-sized private companies for the past twenty years through six investment funds with aggregate capital commitments of approximately $3.5 billion. The firm’s investment strategy is to seek companies that have strong growth prospects and to partner with talented management teams who are interested in being owners of the companies they operate. Berkshire has developed specific industry experience in several areas including consumer products, industrial manufacturing, transportation, communications, business services, and retailing and related services. Berkshire has been an investor in over 80 operating companies with more than $11.0 billion of acquisition value and combined revenues in excess of $15.0 billion. Additional information may be found at www.berkshirepartners.com.


PLEASE NOTE: Information in this section is provided verbatim by rail industry suppliers and is not verified. No warranty is made by Trains magazine or TrainsMag.com as to its accuracy or appropriateness."

 

Thanks, but more appropriate for the Off Topic section of the Forum than in C5 General.

 

They already sold off Delco.

 

Nothing new. For the last few years, GM has been selling off all its non-auto related business.
EDS spun off in 1996.
Delphi spun off in 1999.
Defense unit sold to General Dynamics in 2003.
Hughes Electronics sold to New Corp in 2003.

 

Cutting cost, overhead, same old same old

 

No need for alarm; Corvette is NOT a division. It's just a model under Chevrolet. GM would never sell Chevrolet. Also, the Corvette is a profitable line thanks to all of us!

 

"GM Agrees To Sell Electro-Motive Division"


Does anyone even know what the "GM Electro Motive Division" is


It's the division in GM that builds Locamotive Engines.... ya know... Trains that go on Train Tracks


GM has their hands into sooooo many things. They have been divesting of their non-core businesses for years. Selling off AC Delco, Paper Mills in the south, EDS comper services... So they can focus on cars.

 

 

Selling the train division is a little different! Now if they start selling off Chevy, then you have something!

 

 

Usually they are trying to get rid of high cost in-house parts builders/suppliers. Computer industry did this a long time ago. Gives the company a lot of flexibiliity and clout in negotiating parts prices. When it is in-house you are locked in and can only nitpick/whine about their costs ... you can't go someplace else.