Diesel locomotive set, and went into series production with other streamlined car sets in Germany starting in 1935. In the USA, diesel-electric propulsion was brought to high speed mainline passenger service in late 1934, largely through the research and development efforts of General Motors from 1930–34 and advances in lightweight carbody design by the Budd Company. The economic recovery from the Second World War saw the widespread adoption of diesel locomotives in many countries. They offered greater flexibility and performance than steam locomotives, as well as substantially lower operating and maintenance costs. Diesel–hydraulic transmissions were intrdouced in the 1950s, but from the
Diesel locomotive was uneconomical to apply to lower-traffic areas. The first regular use of diesel–electric locomotives was in switching (shunter) applications, which were more forgiving than mainline applications of the limitations of contemporary diesel technology and where the idling economy of diesel relative to steam would be most beneficial. GE entered a collaboration with the American Locomotive Company (ALCO) and Ingersoll-Rand (the "AGEIR" consortium) in 1924 to produce a prototype "boxcab" locomotive delivered in July 1925. This locomotive demonstrated that the diesel–electric power unit could provide many of the benefits of an electric locomotive without the railroad having to bear the sizeable