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
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