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
Diesel locomotive offered the possibility of converting existing steam locomotives to diesel operation. The frame and cylinders of the steam locomotive would be retained and the boiler would be replaced by a diesel engine driving an air compressor. The problem was low thermal efficiency because of the large amount of energy wasted as heat in the air compressor. Attempts were made to compensate for this by using the diesel exhaust to re-heat the compressed air but these had limited success. A German proposal of 1929 did result in a prototype but a similar British proposal of 1932, to use an LNER Class