Re: Why no SD75s on UP?
Author: David Jansson
Date: 08-01-2007 - 09:33
Don't forget that UP did a deal with EMD on the financing (the details of which would be VERY interesting to go over!). EMD got to keep its line up for over a year (lowering the basic unit price and standardizing the mfg. process - a BIGGIE) and UP got a "reliability contract" that guaranteed an available percentage of these units somewhere higher than 90%. Part of the deal there was that while UP paid for 1000 engines, they actually got extra 'freebie' units (20?) tacked on the order to get the "power available" numbers specified in the contract. When the units proved to be reliable UP added another order with the same details.
All in all, a SWEET DEAL for both parties. And I'll bet that BNSF went to GE and finagled the same type of deal.