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[CBQ] Re: Q U23C or SD39

To: CBQ@yahoogroups.com
Subject: [CBQ] Re: Q U23C or SD39
From: clipperw@EarthLink.net
Date: Wed, 2 Feb 2005 10:56:25 -0600
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Jeff,

The simple answer is that one salesman was better than the other. Most 
probably, price was the deciding factor, but there are certainly other 
influencing factors. The final decision is usually rendered by the 
Purchasing Department, but generally, all departments involved with 
locomotives have an input. Sometimes, one or two influential officials 
just have a stronger preference for one builder's product over the 
other. For GE, in those days, breaking into an EMD stronghold like the 
Q was an important objective. EMD, at that time, had 75 - 85% of the 
U.S. business and they may not have tried as hard. In those days, it 
was normal practice to sell locomotives at list price only. At EMD, it 
was called the "Blue Line" price list and it was updated and reissued 
two to four times per year. GE's U23C model may have been lower priced 
than EMD's SD39. The competition was basically the "extras" that each 
company could provide. Sometimes, it was the relationship that was 
developed between the RR and the builder, sometimes it was delivery 
schedule, sometimes, it was the result of a previous poor experience 
with a product and sometimes it was the result of a management change 
with sympathies for the other builder.

After 1980, all that changed and the market place really became price 
competitive. GE started pricing each quote individually and EMD was 
forced to follow. EMD never really managed to match GE in price because 
GE seemed to have better control of their cost. The results, of course, 
was that around 1985, GE became the number one builder, just as Jack 
Welsh wanted. I think, right now, the two are close, but it will be 
interesting to see what happens as EMD goes under new ownership next 
month.

Bill Barber

On Wednesday, February 2, 2005, at 07:12 AM, CBQ@yahoogroups.com wrote:

>    Date: Tue, 01 Feb 2005 22:27:17 -0000
>    From: "jworones" <jworones@yahoo.com>
> Subject: Q U23C or SD39
>
>
> While reading through some old X2200S magazines from 1968, came
> across a news piece that said the Q was ordering 10 SD45's and 'an
> undetermined number of SD39s'.
> A month later it was rumored to be SD39s or U23Cs. We know the
> outcome, but does any one have any info on the decision process?
> Why was one chosen over the other?
>
> TIA!
> Jeff Worones
> Lake Stevens, WA



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