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Posted by
Olog-hai
on Mon Nov 22 13:52:37 2010, in response to No DMU's in future, American Railcar gone., posted by Dutchrailnut on Sat Nov 20 19:13:57 2010.
edf40wrjww2msgDetail:detailStr fiogf49gjkf0d All I see in the news is that American Railcar Industries pulled out of the partnership, not that US Railcar is not still pursuing DMUs; certainly American Railcar Industries is itself not gone but very much in business. A bit premature to say "No DMUs in future" thus far? Stop reading Trainodors and misinterpreting what those psychopaths say there.
Columbus Business First
US Railcar joint venture partner pulls out
Business First - by Adrian Burns
Date: Friday, November 19, 2010, 9:49am EST
The joint venture between a Columbus-based US Railcar Co. LLC and an out-of-state rail car maker has been dissolved, although US Railcar will continue with plans to build passenger rail cars and is still considering a site in Gahanna for a manufacturing plant, said US Railcar Principal Barry Fromm.
US Railcar, a subsidiary of Columbus-based Value Recovery Group Inc., said in February it was joining with St. Charles, Mo.-based American Railcar Industries Inc. to enter the passenger rail market.
But American Railcar said in a regulatory filing that it was dissolving the joint venture with the Columbus company.
“The decision to dissolve the joint venture was the result of current market conditions for DMU orders,” American Railcar said, referring to diesel multiple units, the type of passenger car the venture hoped to build.
American Railcar has pulled out as an equity partner, but will remain a contract manufacturer paid to produce rail cars if an order comes in, said Value Recovery Group CEO Barry Fromm, who also closely oversees the US Railcar venture. The company has said it will produce the cars out of state until it finds funding it needs to build a plant here.
“We want to do it in Ohio,” Fromm said.
A contender for a factory site is a brownfield east of Port Columbus International Airport in Gahanna.
While American Railcar cited market conditions as reason to pull its equity stake in the deal, Fromm said he’s confident demand remains strong.
“We’re trying to get an order,” he said. “There is a 500-car potential.”
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