Diesel locomotive Calabro Lucane in southern Italy in 1926, following trials in 1924-5. In 1924, two diesel–electric locomotives were taken in service by the Soviet railways, almost at one time: In 1935, Krauss-Maffei, MAN and Voith built the first diesel–hydraulic locomotive, called V 140, in Germany. The German railways (DRG) being very pleased with the performance of that engine, diesel–hydraulics became the mainstream in diesel locomotives in Germany. Serial production of diesel locomotives in Germany began after World War II. In many railway stations and industrial compounds, steam shunters had to be kept hot during lots of breaks between scattered short tasks.
Baldwin Locomotive Works emerged from bankruptcy in 1938 it underwent a drastic change in management. The new management revived their development efforts with diesel power but the company was already too far behind. In 1939 Baldwin offered its first standard line of diesel locomotives, all designed for yard service. By this time, GM-EMC was already ramping up production of diesel passenger locomotives and developing its first diesel road freight locomotive. As the 1930s drew to a close, Baldwin's coal-country customers such as Pennsylvania Railroad, Chesapeake and Ohio, and Norfolk and Western were more reluctant than other operators to embrace diesel technology, which could