Diesel locomotive Calabro Lucane in southern Italy in 1926, following trials in 1924-5. In 1924, two diesel–electric locomotives were taken in service by the Soviet railways, almost at one time: In 1935, Krauss-Maffei, MAN and Voith built the first diesel–hydraulic locomotive, called V 140, in Germany. The German railways (DRG) being very pleased with the performance of that engine, diesel–hydraulics became the mainstream in diesel locomotives in Germany. Serial production of diesel locomotives in Germany began after World War II. In many railway stations and industrial compounds, steam shunters had to be kept hot during lots of breaks between scattered short tasks.
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