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Rail News: Mechanical

Railpower to foot $15 million bill to fix recalled switchers


It’s going to cost Railpower Technologies Corp. about $15 million to fix 65 Green Goat® series switchers the company recalled last month.

Railpower estimates it will spend $2 million to upgrade 25 of the locomotives with new monitoring software and complete mechanical improvements. Work will begin next month.

The company recalled the switchers after a fire occurred in a Green Goat unit on May 30. Railpower stopped producing Green Goat locomotives in the first quarter.

The company also conducted a technical analysis of the 40 other switchers and determined the most valid option is to convert the units to Railpower’s new generator-set (Gen-set) model at a cost ranging between $10 million and $13 million. Late last year, the company introduced a three-engine diesel RP-Series Gen-set switcher.

“The company is actively seeking additional financing to ensure there are adequate funds to convert the Green Goats and continue the sale of Gen-set locomotives,” said Railpower President and Chief Executive Officer José Mathieu in a prepared statement. “We are committed to supporting our products and our goal is to ensure that our customers can resume normal operations as soon as possible.”

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More News from 7/20/2007