UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15 (d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): March 2, 1998
Commission file number 0-23802
MOTIVEPOWER INDUSTRIES, INC.
(Exact name of registrant as specified in its charter)
DELAWARE 82-0461010
(State or other jurisdiction (I.R.S. Employer
of incorporation) Identification Number)
1200 Reedsdale Street, Pittsburgh, Pennsylvania 15233
(Address of principal executive offices; zip code)
(412) 237-2250
(Registrant's Telephone No., including area code)
Item 5. Other Events
On March 3, 1998, MotivePower Industries (the Company) and the
Electro-Motive Division of General Motors formed a strategic alliance to design,
manufacture and market low-horsepower, switching and branchline locomotives in
the United States, Canada and Mexico. MotivePower Industries is the
third-largest manufacturer of locomotives in NAFTA.
Under a marketing and supply agreement, Boise Locomotive, a subsidiary of
the Company, will be the exclusive manufacturer of Electro-Motive's private
brand, 1,500- and 2,000-horsepower locomotives for the NAFTA market. Boise
Locomotive will also continue to market other DC- and AC-traction locomotives
under 4,000 horsepower under its own brand name and possibly the Electro-Motive
Division brand. Boise Locomotive believes that through the alliance it may be
able to achieve sales of 10 locomotives in 1998 and as many as 30 units annually
by the year 2000. This is a forward-looking statement and the actual results
could differ materially from the results suggested in any forward-looking
statements. Factors that could cause or contribute to these material differences
include, but are not limited to, the following: a general decline in the NAFTA
economy, which could cause a decrease in rail traffic; continued consolidation
by U.S. railroads, which could cause them to reduce purchases of goods and
services; and the ability of the strategic alliance partners to create increased
market demand for low-horsepower locomotives. In making these forward-looking
statements, the company assumes no obligation to update them or advise of
changes in the assumptions on which they were based.
On March 2, 1998, MPI de Noreste S.A. de C.V. ("MPI de Mexico"), a
subsidiary of the Company, signed a new, 17-year contract in Mexico, valued at
$419 million. The new agreement replaces a previous contract that had six years
and approximately $177 million in revenues remaining. Under the new
contract with TFM S.A. de C.V., MPI de Mexico will overhaul and maintain 168
locomotives at its San Luis Potosi facility in the Northeast region of Mexico. A
joint venture of Transportation Maritima Mexicana S.A. de C.V. and Kansas City
Southern Industries Inc., TFM was awarded a 50-year concession to operate the
Northeast region of the National Railways of Mexico as part of the Mexican
government's program to privatize the rail system.
In addition to the 168 locomotives covered under the new TFM contract, MPI
de Mexico provides fleet maintenance on 151 other units under separate
multi-year contracts with TFM and other customers in Mexico, for a total of 319
locomotives.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
MOTIVEPOWER INDUSTRIES, INC.
(Registrant)
By: /s/ William D. Grab
------------------------------
William D. Grab
Vice President, Controller and
Principal Accounting Officer
March 4, 1998