Re: BN F-units traded in to GE?
Author: Erik H
Date: 12-19-2020 - 19:06
I hate scrappers! Wrote:
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> I read on a blog that BN traded an F-unit in to GE in 1980. What is the point of trading
> in old, worn out locomotives if they just get scrapped, probably for no profit to GE?
Airbus and Boeing routinely make trade-in deals for aircraft. Trade in a 25 year old MD-80 on a brand new A320 or 737.
Your local car dealership does it all the time. Do you think they honestly resell every car they take in on trade? Nope - LOTS of them go to wholesale auctions where they end up thousands of miles away, or at those corner used car lots.
Same with locomotives, although probably a lot less frequently in recent years. If EMD/GE think they can make a good deal offering a discount on a trade-in, and then handle the reuse of the trade-in unit, why not? If EMD/GE think they can take that worn out hulk, resell it for scrap value to a rebuilder like NRE, but then make money off selling new or reman parts to NRE to put on that old worn out frame.