Diesel locomotive Therefore, diesel traction became economical for shunting before it became economical for hauling trains. The construction of diesel shunters began in 1920 in France, in 1925 in Denmark, in 1926 in the Netherlands, and in 1927 in Germany. After few years of testing, hundreds of units were produced within a decade. Diesel-powered or "oil-engined" railcars, generally diesel–mechanical, were developed by various European manufacturers in the 1930s, e.g. by William Beardmore and Company for the Canadian National Railways (the Beardmore Tornado engine was subsequently used in the R101 airship). Some of those series for regional traffic were begun with gasoline motors
Electro-Motive Diesel 567 engine, introduced by their renamed Cleveland Diesel Engine Division in 1938. The new engine upgraded the horsepower of EMC's E series locomotives to 2000 per locomotive unit and increased reliability substantially. Also in 1938, EMC started to increase its reach up the chain of locomotive production by transitioning from General Electric equipment to in-house produced generators and traction motors. With Eugene Kettering moving to EMC that year, EMC moved into a leading role in further development of GM's locomotive engines. GM-Winton-EMC's long development efforts put the company in an advantageous position relative to other developers of Diesel-electric locomotion. Their