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 FT demonstrator freight locomotive set, the stage was set for dieselization of American railroads. In 1941 ALCO-GE introduced the RS-1 road-switcher that occupied its own market niche while EMD's F series locomotives were sought for mainline freight service. The US entry into World War II slowed conversion to diesel; the War Production Board put a halt to building new passenger equipment and gave naval uses priority for diesel engine production. During the petroleum crisis of 1942-43, coal-fired steam had the advantage of not using fuel that was in critically short supply. EMD was later allowed to increase production of its