Wednesday, July 01, 2009

Private investors back Colorado Railcar DMU concept

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Private investors affiliated with Value Recovery Group, Inc.,Columbus, Ohio, are behind the move by US Railcar, LLC, to acquire the Colorado Railcar diesel multiple-unit (DMU) design, in order to advance the manufacture of a U.S. DMU alternative for transit markets. The assets acquired include proprietary rights and information, manufacturing documentation, inventory, tooling, fixtures/jigs, and other equipment necessary for production.

In a statement, VRG Chairman & CEO Barry H. Fromm said, “US Railcar intends to reestablish passenger train production in the United States.”

“We want to keep American jobs and U.S. public investment at home,” said Fromm. “There is a major commitment by the Obama Administration and the Congress to make investments in intercity and high speed rail to promote economic growth and mobility, create jobs, conserve energy, and address climate change. This opens a new era for passenger trains and railcar manufacturing in the United States.”

Michael P. Pracht will serve as president and CEO of US Railcar; Pracht’s career includes stints with Siemens and Ansaldo STS. US Railcar intends to manufacture both single- and bi-level DMUs per the Colorado Railcar design.