ALSTOM and General Motors Electro-Motive Division to Create Joint Venture in Locomotive Maintenance Services
6 November 2000ALSTOM and General Motors Electro-Motive Division to Create Joint Venture in Locomotive Maintenance Services
PARIS and CHICAGO, Nov. 6 ALSTOM and General Motors Electro-Motive Division (EMD) announced today that they have entered into an agreement in principle to form a Joint Venture that will create a leading provider of locomotive maintenance services to railroad customers worldwide. The Joint Venture, to be called ALSTOM EMD SERVICES, will be a cooperative effort between two world leaders in the locomotive and transportation businesses. The Joint Venture will focus on servicing locomotives of all types and brands, not just those manufactured by ALSTOM and EMD. ALSTOM will hold a majority stake in the new company. The formation of the Joint Venture is subject to the negotiation and execution of definitive agreements and to the satisfactory completion of due diligence. Michel Moreau, President of ALSTOM's Transport Sector, said: "By linking ALSTOM's worldwide reach in the transportation business with EMD's proven reputation for product design and quality, the Joint Venture is expected to make both companies more globally competitive in the locomotive maintenance marketplace." According to R. William Happel, GM Vice President and General Manager of GM's Electro-Motive Division, "The companies' combined superior products and technologies, along with proven solutions approaches and an international presence, would allow the Joint Venture to offer an unprecedented range of services to locomotive customers." ALSTOM is the global specialist in energy and transport infrastructure. The company serves the energy market through its activities in the fields of power generation, power transmission and distribution, power conversion and electrical contracting and the transport market through its activities in rail and marine. ALSTOM today has annual sales in excess of 20 billion euros and employs more than 140,000 people in over 70 countries. ALSTOM Transport, with sales of over 4 billion euros and a near 20% market share, is a leading supplier of rolling stock, signaling, services and railway systems to the rail industry world-wide. GM's Electro-Motive Division is one of the world's largest manufacturers of diesel/electric locomotives, as well as a provider of power generation and marine power products, services, and parts. Since its founding in 1922, EMD has shipped more than 56,000 locomotives to 73 countries worldwide. FORWARD LOOKING STATEMENTS The first sentence of the first paragraph and the second paragraph of this release are forward-looking statements, within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. By their very nature, forward-looking statements involve inherent risks and uncertainties that the forward-looking statements will not be achieved. Such statements are based on management's current plans and expectations and are subject to a number of important factors that could cause actual results to differ materially from the plans, objectives and expectations expressed in such forward-looking statements. These factors include: (i) the effects of, and changes in, laws, regulations, governmental policy, taxation or accounting standards or practices; (ii) the effects of competition in the product markets and geographic areas in which the proposed Joint Venture would operate and (iii) ALSTOM's success at adjusting to and managing the risks of the foregoing. ALSTOM cautions that the foregoing list of important factors is not exhaustive; when relying on forward-looking statements to make decisions with respect to the Company, investors and others should carefully consider the foregoing factors and other uncertainties and events, as well as other factors described in other documents ALSTOM files from time to time with the Securities and Exchange Commission, including reports on Form 6-K. Such forward-looking statements speak only as of the date on which they are made, and ALSTOM undertakes no obligation to update or revise any of them, whether as a result of new information, future events or otherwise.