American conglomerate General Electric (GE) is looking at selling its transportation division in order to become simpler, stronger and to drive more growth.
Reports of a proposed sale had circulated in the media prior to GE chairman John Flannery confirming rumours on November 13.
After conducting a thorough review of the business, John – who has been tasked with bolstering GE’s profits after succeeding Jeffrey Immelt in August – said that the company needs to focus and strengthen areas that play to its unique strengths, such as in technology, services, additive manufacturing, and digitisation.
Part of this strategy involves GE exiting $20 billion of non-core businesses, such as transportation, which it is “exploring strategic options around proposed sales”. It is understood that this process will take between one to two years.
GE Transportation manufactures locomotives, provides digital support services and is headquartered in Chicago. It employs approximately 10,000 employees worldwide.
On Rafael’s appointment, GE chairman John Flannery said: “His experience helping teams navigate through this tough market, combined with his deep global, operational, services and industrial experience make him the perfect fit for this role. I look forward to working with him closely.”
Aside from transport, GE is also present in the follow markets: power, renewable energy, oil & gas, aviation, healthcare and lighting.
In 2016, GE sold its train signalling business to Alstom.