Re: EMD London Shutdown
Author: Espee99
Date: 02-24-2012 - 19:51
Maybe we are not asking the proper question. Are we losing business by not operating in the United States, and if we operate in the US can we afford a Canadian plant staffed at the current levels to build loco's when we can build loco's in Mexico. It is possible that Cat is looking to reenter the US market that is supported by the Government which is requiring US final assembly and parts. So the real comparison is whether the remaining business is more profitable in Mexico than Canada.
I would venture a guess the the SD's produced in Mexico present a better business future than those to be build in Canada. Since the GEs are not build in Canada, but NY or Texas, EMDs will be build in the US or Mexico, with EMD re-entering the passenger market due the ability to bid on Government funded business.