Greenbrier settles railcar row with GE
Dec 16, 2009 | 06:37 AM
| Frank Haflich
A dispute over one of the largest outstanding U.S. orders for railcars has been settled as Greenbrier Cos. Inc. and General Electric Co. have agreed to slash the number of units by nearly half.
Lake Oswego, Ore.-based Greenbrier said that under a modified contract it will build up to 6,000 railcars for GE Railcar Services Corp. in Chicago, with the first 3,800 due to be manufactured by July 2013.
Under an original 2007 contract, Greenbrier had agreed to build 11,900 tank cars and hopper cars for GE Railcar over an eight-year period, with the final 8,500 units subject to Greenbrier's fulfillment of certain contractual conditions. But Greenbrier said previously that GE wanted to "substantially reduce, delay or otherwise cancel" the railcar deliveries, a move that would have resulted in "significant reductions in work force and cost-cutting measures" at the company (AMM, March 13).....
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