News From the Auto Industry

Contractual partnerships have meant that 75% of GM EMD-powered locomotives supplied to railway operators in Europe have been manufactured in alliance with associates, which, in the past, have included such names as BN (Belgium), Henschel (Germany), Macosa, and Alstom (Spain), Nohab, and Kalmar (Sweden), and Djuro Djakovic (Yugoslavia).

“At the moment, we are talking to a lot of people about possible new orders, but these are going to be in small rather than large quantities. At this stage, therefore, it would not be economic to have a direct presence in those countries where we expect to secure contracts.

“We will maintain our partnering policy until we can gain momentum and the volume of orders picks up. Then we will consider setting up local production facilities. I think this could happen in the next two to three years, and certainly within the next five years.

The Next Step

“Initially, we plan to announce in the near future the launch of our European office for railway and locomotive business. We are going to put our money and our people where they can best serve the needs of the customers.

“The liberalisation of the European rail industry has opened up new opportunities for GM EMD. In the wake of the revitalisation of railfreight and passenger traffic, alliances with others will be the key to expanding our European business.

Additionally, the company has supplied 300 diesel locomotives to railways in the Scandinavian region, 500 in central and western Europe, and 400 in eastern Europe. Typically, most of these locomotives are built by local manufacturers under licence to EMD.

“Once we see the smaller fleets established in Europe, I think the effect of people seeing the new locomotives in operation will have a knock-on effect with an increase in the size of subsequent orders. This should provide the momentum for us to set up our own facilities, perhaps in one of the major regions such as France or Germany.