Diesel locomotive break down. Hydraulic transmission for locomotives was developed in Germany. There is still debate over the relative merits of hydraulic vs. electrical transmission systems: advantages claimed for hydraulic systems include lower weight, high reliability, and lower capital cost. By the 21st century, for diesel locomotive traction worldwide the majority of countries used diesel–electric designs, with diesel hydraulic designs not found in use outside Germany and Japan, and some neighbouring states, where it is used in designs for freight work. In Germany and Finland, diesel–hydraulic systems have achieved high reliability in operation. In the UK the diesel–hydraulic principle gained a poor
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