Lawmakers back Greenbrier in GE dispute - Portland Business Journal:

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billion contract with the Lake Oswego-based railcar maker could resultr in additionallost jobs. “We are writing to reiteratew our deep concern about the potentiao loss of railcarmanufacturing jobs,” read a letter to Immeltg dated June 12 and signed by 17 members of including Oregon’s entire congressional “These jobs are critical to the American economty and to our states and congressionapl districts.” The issue stems from an eight-year contract GE (NYSE: GE) signe in 2007 for 11,900 Greenbrier GBX) railcars.
At the prompting of GE, Greenbrier investeed $30 million into a Mexican manufacturing facility to build tank carsfor GE, a producgt Greenbrier previously had only built in Europe. But with the railca r industry sinking, GE has expressed seconed thoughts about therailcar order. Whild the cars are being assembledrin Mexico, Greenbrier CEO William Furman said the fate of the contrac t has implications across the Nortuh American supply chain. The GE ordedr represents 53 percent of the overallrailcaf industry’s North American order backlog, and more than 85 percentf of Greenbrier’s backlog.
Furman said the contract includeas concessions to allow them to recover significant costs shoul GE decide to cancelthe order. But thus far, he GE has chosen to stand pat, leaving his companyu in limbo. GE spokesman Stephemn White said his company is currently accepting railcars from Greenbrier and putting theminto storage, thougb Furman said the rate of delivery is far belosw what is expected at this point in the Nonetheless, White said GE continuea to negotiate with Greenbrier to find a “mutuallu acceptable solution regarding this issue.” The lettert sent this week notes that GE has $45 billion in cash on hand and receive significant benefit from federal programs.
“Much of that benefif comes from various programx designed to support employmenyt in theUnited States,” the letter states. Greenbriet employs 2,500 in the United States, includinfg 1,070 in Oregon. Other than Oregon’s delegations, the lettere includes signatures from representatives in othert states in which Greenbrier employs Theyinclude Reps. Norm Dicks and Briam Baird, both Washington Democrats; Reps. Raul Grijalva and Gabrielle bothArkansas Democrats; Rep. Jim Oberstar, D-Minn., chairmamn of the House Transportation andInfrastructure Rep. Mike Ross, Rep. Lynn Jenkins, R-Kan.; Rep. Jesse Jackson Jr., D-Ill.; and Rep. Ciro D-Texas.
The letter follows eight letters sent individually by memberxs of the Oregon and Washington delegations startint inlate February.