UNION PACIFIC + Thrall Car: A "BREAKTHROUGH ALLIANCE" - Brief Article

Railway Age, Oct, 1999

Union Pacific and Thrall Car Manufacturing Co. announced Sept. 10 that they have entered into a "preferred business partner relationship" in which they will share risks and rewards. "UP and Thrall have committed to work together in an alliance that combines the market and product strengths of both organizations to create new and enhance current products," particularly with respect to the automotive business, said the joint announcement. "By taking and sharing risks in material purchases, new technology and new production methods, UP and Thrall will add value to the rail transportation industry and create new efficiencies for customers."

They called their partnership a "breakthrough alliance"--"a highly integrated business relationship involving several departments and levels of management within both organizations." There will be three core teams:

A productivity team will focus on reducing the cost and time required to build multilevel and general freight cars and on improving forecasting and production planning; it will also "explore strategies to create even-flow supply and demand and use Thrall's shop capacity in alternative ways during slower economic periods," and will look into "the benefits of combining purchases of raw materials and components and supplying best manufacturing practices and technology across all rail car types."

An innovation team will pursue new car designs and technology, and a quality team will seek new methods to protect autos and other products in transit.

In a separate announcement on Sept. 13, ABC-NACO, Inc. and Gunderson Rail Services said they had entered into a letter-of-intent for a long-term contract with UP--an industry first--to perform all freight car wheel mounting and repair and wheel maintenance services for UP, which has a 128,000-car fleet. The announcement said the contract will more than double the wheelset output of both ABC-NACO and Gunderson Rail Services, which is a unit of The Greenbrier Companies.

Griffin Wheel Company will continue to supply all of the wheels for UP's freight car wheelset requirements, shipping wheels to both the Gunderson and ABC-NACO wheel shops.