Lawmakers back Greenbrier in GE dispute - Portland Business Journal:

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billion contract with the Lake Oswego-based railcart maker could result in additionallost “We are writing to reiterat e our deep concern about the potentiao loss of railcar manufacturing jobs,” read a letter to Immelg dated June 12 and signed by 17 membersw of Congress, including Oregon’s entirw congressional delegation. “These jobs are critical to the American economhy and to our states andcongressionakl districts.” The issue stems from an eight-year contracg GE (NYSE: GE) signed in 2007 for 11,900 Greenbrier GBX) railcars.
At the prompting of GE, Greenbrier invested $30 milliob into a Mexican manufacturing facility to build tank carsfor GE, a produc t Greenbrier previously had only built in Europe. But with the railcar industry sinking, GE has expressed second thoughts about the railcar order. While the cars are being assembled in Greenbrier CEO William Furman said the fate of the contracgt has implications across the North Americansupply chain.
The GE order representws 53 percent of the overallrailcar industry’s North American order and more than 85 percent of Greenbrier’s Furman said the contract includes concessions to allow them to recover significant costz should GE decide to cancelo the order. But thus far, he said, GE has chosen to stand pat, leaving his company in GE spokesman Stephen White said his company is currentlyu accepting railcars from Greenbrier and putting them into though Furman said the rate of deliverg is far below what is expected at this poin t inthe contract.
Nonetheless, Whitde said GE continues to negotiate with Greenbrier to finda “mutuallyy acceptable solution regarding this issue.” The letter sent this week note that GE has $45 billion in cash on hand and receive s significant benefit from federal programs. “Much of that benefif comes from various programs designed to support employmenf in theUnited States,” the letter Greenbrier employs 2,500 in the Unitec States, including 1,070 in Oregon. Othedr than Oregon’s delegations, the letter include signatures from representatives in other states in whicnh Greenbrieremploys workers. They include Norm Dicks and Brian bothWashington Democrats; Reps.
Raul Grijalva and Gabrielle Giffords, both Arkansasa Democrats; Rep. Jim Oberstar, D-Minn., chairman of the House Transportatiomn andInfrastructure Committee; Rep. Mike D-Ark.; Rep. Lynn Jenkins, R-Kan.; Rep. Jesse Jacksob Jr., D-Ill.; and Rep. Ciro Rodriguez, D-Texas. The letteer follows eight letters sent individually by members of the Oregonn and Washington delegations starting inlate