In 1988 a joint-venture was formed between the General Electric Company (GEC) with Compagnie Générale d’Electricité (CGE) that led to the establishment of an Anglo-French company, GEC Alsthom in 1989. This company encompassed the Power Generation and Transmission, Rail Transport (25%) businesses from the constituent companies of GEC and CGE. The GEC Alsthom company headquarters were based at Rugby, Warwickshire and the headquarters for Transport were based at Trafford Park in Manchester.

GEC Alsthom purchased train builder Metro-Cammell based at Washwood Heath, Birmingham from the Laird Group in 1989, bringing into the group a company which had a long association with GEC Traction and its predecessors as a vehicle builder. In 1998 GEC Alsthom was re-formed and became Alstom with Transport / Alstom Transport one of its major divisions.