Adtranz

ABB Daimler Benz Transportation
DaimlerChrysler Rail Systems
(Adtranz)

Adtranz Logo
Type	joint venture
Industry	Rail transportation
Successor	Bombardier Transportation
Founded	1996 (through merger)
Headquarters	Berlin, Germany[1]
Key people	Rolf Eckrodt (President 1992-6, Chairman 1996-8)[2]
Products	Rail vehicles, railway electrification and signalling
Revenue	DM5.7 billion (1996)[3] DM6.4 billion (1997)[4] €3.3 billion (DM6.5 billion) (1998)[5] €3.6 billion (1999)[6] €3.9 billion (2000)[7]
Owner(s)	ABB, Daimler-Benz Daimler Chrysler (after 1999)
Employees	22,715 (1997)[4]

A refurbished CityRail Endeavour railcar manufactured by Adtranz

ABB Daimler-Benz Transportation (after 1999 DaimlerChrysler Rail Systems), commonly known under its brand Adtranz, was a multi-national rail transport equipment manufacturer with facilities concentrated in Europe and the USA.

The company was created in 1996 in the merger of Daimler-Benz's and ABB's rail equipment manufacturing facilities, in 1999, DaimlerChrysler (now Daimler AG) bought ABB's shares and changed its official name to DaimlerChrysler Rail Systems. Bombardier Transportation acquired the company in 2001, at which time Adtranz was the world's second largest manufacturer of such equipment. The acquisition significantly increased the size of Bombardier's rail industry holdings making Bombardier the largest rail equipment manufacturer in the world.

Adtranz manufactured mainline locomotives, high-speed, regional, metro and underground passenger trains, trams and people movers as well as freight wagons. Non rolling stock businesses included railway electrification and signalling infrastructure.

History

On 8 May 1995 ABB and Daimler-Benz proposed a merger of their rail industry related activities into a single autonomous 50:50 joint venture; the combined group would be the largest rail-technology company in the world.^[8] In Germany the combined company, along with Siemens would have a duopoly or near-duopoly in the market areas of electric locomotives, mainline and regional electric and diesel multiple units, trams and metros, and catenary systems.^[9] In the EU, outside Germany, the merger would have meant no significant market share increase, including Scandinavia, where ABB had a dominant market share.^[10] The proposed merger was suspended pending a report on any potential anti-competitive effects of the merger, on 18 October 1995 the merger was allowed, provided that both companies divest themselves of any shares in Kiepe (traction components company).^{[note 1][11]} The merger came into force on 1 January 1996.^[12]

The company's manufacturing facilities and product lines were rationalised, including a standard form of car body; after 18 months manufacturing costs had been reduced by 30%,^[2] revenues and orders also rose from 1996-7.^[4] However the company continued to be loss making, losing $111 million in 1997.^[2] Polish manufacturer Pafawag was acquired in 1997 and the facility modernised,^[4] controlling interests in MÁV Dunakeszi,^{[note 2]} Hungary and Schindler Waggon Switzerland were also acquired by the end of 1997.^[4]

In March 1998 Adtranz presented a set of new product brands for modular product platforms, with designs that can be adapted for the specific requirements of different customers: the Innovia guided transport vehicle, the Incentro low floor tram, the Itino diesel multiple unit, the Crusaris medium-high speed train (based on the GMB Class 71 flytoget trains), and the Octeon electric locomotive.^{[note 3]} A new diesel locomotive design with engine and electrical traction system provided by General Electric was introduced, named "Blue Tiger".^[13][14] Adtranz intended to consolidate its product range around these families once on-going deliveries are finished.^[15]

Adtranz continued to make an operating loss in 1998, attributed to earlier contracts with underestimated costs, as well as technical problems with products. The same year brought an order for 400 locomotives for Deutsche Bahn, as well as the acquisition of Swiss locomotive manufacturer Schweizerische Lokomotiv- und Maschinenfabrik AG (SLM).^[5]

In January 1999 ABB sold its 50% stake in Adtranz to DaimlerChrysler for $472million,^[16] taking up a previous agreement made on the formation of the joint venture whereby DaimlerChrysler was required to purchase ABB's stake.^[17][18]

In 2000 Adtranz finally achieved profitability.^[7] In preparation for a sale from DaimlerChrysler buyers for non-core rolling stock manufacturing businesses were sought.^[7] In January 2000 The Greenbrier Companies acquired the freight wagon business based in Siegen.^[19][20] The electrical installations business (overhead electrification systems) was sold to Balfour Beatty in late 2000 for €153million.^[21] No buyer was found for the railway signalling division.^[2]

In August 2000 Bombardier Inc. announced that it was to buy Adtranz for $711million,^{[note 4]} considered to be a low price.^[22] The sale was cleared by the European Union in April 2001; amongst the guarantees required to be made by Bombardier was that it would divest and license its product range in the regional and tram sectors to Stadler Rail due to the large German market share of the new group in those areas, making Stadler a viable independent company.^[23] The takeover came into legal effect on 1 May 2001 with a final price of $725million.^[24][25] In 2002 Bombardier announced that it was to sue DaimlerChrysler for $867million due to alleged misleading financial information regarding Adtranz provided by DaimlerChrysler during the takeover,^[26][27] in September 2004 the case was settled with the companies agreeing to a $209million reduction in price.^[28]

Brand

Nameplate of a SEPTA car showing the Adtranz company logo in the center

The brand Adtranz^[29] was created by Landor Associates as part of the corporate identity of ABB Daimler Benz Transportation.^[30] It is an acronym derived from selected letters of the complete name of the first company using it: ABB Daimler-Benz Transportation, with a z in place of an s at the end for the name to imply a complete product platform from A to Z.^[30] It was capitalised by the companies with a capital D as ADtranz, following the standard English text formatting and capitalization rules it is spelled with a small d as Adtranz. Above the text ADtranz, the company logo included a green dot, symbolizing a signal set on green, as well as the environmental friendliness of railways.^[30] Beside ADtranz there was also the slogan ADtranz - we speak railways^[31] in use. Both brands have been discontinued after the take over of DaimlerChrysler Rail Systems by Bombardier. The rights on the slogan have been deleted 2007 and of the name Adtranz 2008.

Products

Adtranz DE2000 locomotive for Hellenic Railways Organization

A list of products past and present:

Locomotives

• E464 electric locomotive
• Norges Statsbaner El 18 locomotives

Subway rail vehicles

• M4 subway/elevated cars for SEPTA Market–Frankford Line, in Philadelphia, PA USA
• R142 IRT Subway cars in New York City
• London Underground 1992 Stock, also as British Rail Class 482

High speed trains

• German ICE 2 high speed train
• Swedish X 2000 high-speed train
• Norges Statsbaner BM73 and Flytoget BM71 high-speed EMUs

Passenger trains

• Swedish Regina intercity electric multiple units
• Adtranz-CAF Series 6000 trains (include MTR A-Stock EMU)
• IC3 Flexliner
• RegioSwinger tilting train
• CountryLink Xplorer diesel passenger train in Australia
• Turbostar and Electrostar
• CityRail Endeavour railcar diesel passenger train in New South Wales, Australia
• Suburban Multiple Units and Interurban Multiple Units used in South East Queensland, Australia.
• C20 metro stock, used in Stockholm, Sweden

Trams

• Flexity Outlook tram
• Variotram
• Incentro Tram

Light rail passenger vehicles

• Manila Light Rail Transit System Yellow Line 2nd Generation Light Rail Vehicles(with Hyundai Rotem)
• Ankara Metro Ankaray Light Metro M1 and M2 (with Siemens and AnsaldoBreda)

See also

• Facilities inherited on foundation: Kalmar Verkstad (Sweden), Strømmens Værksted (Norway), ABB Tecnomasio Vado Ligure (Italy), Henschel-Werke, AEG Schienenfahrzeuge in Hennigsdorf (Germany), Derby Carriage and Wagon Works, BREL (UK)

References

1. ^ DaimlerBenz Annual Report 1996, p.84
2. ^ ^{a b c d} "Rolf Eckrodt". www.referenceforbusiness.com. http://www.referenceforbusiness.com/biography/A-E/Eckrodt-Rolf-1942.html. 
3. ^ DaimlerBenz Annual Report 1996, p.29
4. ^ ^{a b c d e} DaimlerBenz Annual Report 1997, pp.39-40
5. ^ ^{a b} DaimlerChrysler Annual Report 1998, p.47
6. ^ DaimlerChrysler Annual Report 1999, p.49
7. ^ ^{a b c} DaimlerChrysler Annual Report, p.42
8. ^ Commission Decision of 18 October 1995 .. Case No. IV/M.580 - ABB/Daimler-Benz, p.1, p.12 (section 44)
9. ^ Commission Decision of 18 October 1995 .. Case No. IV/M.580 - ABB/Daimler-Benz, pp.13-16 (sections 50-64)
10. ^ Commission Decision of 18 October 1995 .. Case No. IV/M.580 - ABB/Daimler-Benz, p.12 (section 46), p.13 (section 49)
11. ^ ^{a b} Commission Decision of 18 October 1995 .. Case No. IV/M.580 - ABB/Daimler-Benz, p.1 (sections 2-3), pp.38-39
12. ^ "Adtranz in brief". Archived from the original on 28 December 1996. http://web.archive.org/web/19961228231044/www.adtranz.com/brief/brief.htm. Retrieved 23 January 2011. "The international railway group Adtranz is the world's most complete provider of railway systems. The group was legally formed on January 1, 1996 by merging the respective railway activities of Swiss-Swedish elecrical engineering group ABB, Zurich, Switzerland, and Daimler-Benz AG, Stuttgart, Germany." 
13. ^ ADTRANZ RAILWAY CONFERENCE '98' IN OSLO - UNIVERSAL RAIL INNOVATION. . www.prnewswire.co.uk (Adtranz, via PR Newswire). 16 march 1998. http://www.prnewswire.co.uk/cgi/news/release?id=10291. 
14. ^ "Adtranz: restructuring based on seven product lines". findarticles.com. Railway Age. April 1998. http://findarticles.com/p/articles/mi_m1215/is_n4_v199/ai_20581416/. 
15. ^ "Adtranz unveils modular range". Railway Gazette International. April 1998. http://www.railwaygazette.com/nc/news/single-view/view/adtranz-unveils-modular-range.html. Retrieved 2011-01-09. 
16. ^ DaimlerChrysler buys ABB’s share in Adtranz. . www.abb.co.uk (ABB Group). http://www.abb.co.uk/cawp/seitp202/c1256c290031524bc12567310024e211.aspx. 
17. ^ "DaimlerChrysler AG, Annual Report to Securities and Exchange Commission, Washington, D.C.". www.daimler.com. 31 December 1998 (end of fiscal year report). pp. 5, 28, F-15. http://www.daimler.com/Projects/c2c/channel/documents/96966_20f_98.pdf. 
18. ^ DaimlerBenz Annual Report 1996, p.60
19. ^ "Greenbrier to Acquire Adtranz Freight Wagon Division in Siegen, Germany". www.highbeam.com. PR Newswire. 11 January 2000. http://www.highbeam.com/doc/1G1-58520853.html. 
20. ^ "GREENBRIER COMPLETES ACQUISITION OF ADTRANZ FREIGHT WAGON DIVISION". www.highbeam.com. PR Newswire. 24 January 2000. http://www.prnewswire.co.uk/cgi/news/release?id=52316. 
21. ^ "Balfour Beatty Buys Adtranz Division". findarticles.com. International Railway Journal. November 2000. http://findarticles.com/p/articles/mi_m0BQQ/is_11_40/ai_67316110/. 
22. ^ ^{a b} "Bombardier gets Adtranz for a "bargain"". findarticles.com. Railway Age. September 2000. http://findarticles.com/p/articles/mi_m1215/is_9_201/ai_65805853/. 
23. ^ Commission clears takeover of ADtranz by Bombardier, subject to commitments.. . europa.eu (Europa (web portal)). 3 April 2001. http://europa.eu/rapid/pressReleasesAction.do?reference=IP/01/501. 
24. ^ "Bombardier's Acquisition of Adtranz Now Completed". www.allbusiness.com. Business Wire. 30 April 2001. http://www.allbusiness.com/company-activities-management/company-structures-ownership/6066861-1.html. 
25. ^ "DaimlerChrysler sells train division". cdnedge.bbc.co.uk. BBC News. 4 August 2000. http://cdnedge.bbc.co.uk/1/hi/business/866002.stm. 
26. ^ "Bombardier to sue DaimlerChrysler". findarticles.com. International Railway Journal. March 2002. http://findarticles.com/p/articles/mi_m0BQQ/is_3_42/ai_84183085/. 
27. ^ "Industry giants in legal battle". news.bbc.co.uk. BBC News. 14 February 2002. http://news.bbc.co.uk/1/hi/business/1819797.stm. 
28. ^ "Bombardier Reaches a Settlement Agreement With DaimlerChrysler". www.allbusiness.com. Business Wire. 28 September 2004. http://www.allbusiness.com/legal/legal-services-litigation/5225547-1.html. 
29. ^ "Register number: 39745229". register.dmpa.de. Deutsches Patent- und Musteramt (DPMA). http://register.dpma.de/DPMAregister/marke/register/397452292/DE. 
30. ^ ^{a b c} "ADtranz — Neue Corporate Identity und Namensentwicklung für ein führendes Bahntechnik-Unternehmen" (in german). www.landor.com. Landor. April 1996. http://www.landor.com/pdfs/cases/Case5058-A4.pdf. 
31. ^ "Register number: 39649590". register.dmpa.de. Deutsches Patent- und Musteramt (DPMA). http://register.dpma.de/DPMAregister/marke/register/396495907/DE. 

Sources

• "Commission Decision of 18 October 1995 on the compatibility of a concentration with the common market and with the operation of the EEA Agreement in a proceeding pursuant to Council Regulation (EEC) No 4064/89 (Case No IV/M.580 - ABB/Daimler-Benz)". ec.europa.eu. 18 October 1995. http://ec.europa.eu/competition/mergers/cases/decisions/m580_19951018_600_en.pdf. 
  • Note: only German text is considered legally authentic, see:
  • "M.580 ABB/DAIMLER BENZ". ec.europa.eu. http://ec.europa.eu/competition/elojade/isef/case_details.cfm?proc_code=2_M_580. 
• "DaimlerBenz Annual Report 1996". cms.daimler.com. DaimlerBenz AG. http://www.cms.daimler.com/Projects/c2c/channel/documents/1364413_1996_Daimler_Benz_Annual_Report.pdf. 
• "DaimlerBenz Annual Report 1997". cms.daimler.com. DaimlerBenz AG. http://www.cms.daimler.com/Projects/c2c/channel/documents/1364411_1997_Daimler_Benz_Annual_Report.pdf. 
• "DaimlerChrysler Annual Report 1998". cms.daimler.com. DaimlerChrysler. http://www.cms.daimler.com/Projects/c2c/channel/documents/1364408_1998_DaimlerChrysler_Annual_Report.pdf. 
• "DaimlerChrysler Annual Report 1999". cms.daimler.com. DaimlerChrysler. http://www.cms.daimler.com/Projects/c2c/channel/documents/1364405_1999_DaimlerChrysler_Annual_Report.pdf. 
• "DaimlerChrysler Annual Report 2000". cms.daimler.com. DaimlerChrysler. http://www.cms.daimler.com/Projects/c2c/channel/documents/1364403_2000_DaimlerChrysler_Annual_Report.pdf. 

Notes

1. ^ And other conditions relating to the company's influence and decisions regarding the Kiepe company until such time as the company's shares were sold.^[11]
2. ^ See also Bombardier MÁV Kft. (in Hungarian)
3. ^ Derived from the DBAG Class 145 locomotives. See also section: DBAG Class 145 family, Adtranz Octeon platform in TRAXX
4. ^ The price would be subject to the acquired company entering profitability in the following year - if not the sale price would be reduced.^[22]

External links

Archive of Adranz homepage

• "Welcome to Adtranz". Archived from the original on 28 December 1996. http://web.archive.org/web/19961228235320/www.adtranz.com/index.htm.