Diesel locomotive Diesel–hydraulic locomotives have a smaller market share than those with diesel electric transmission - the main worldwide user of main-line hydraulic transmissions was the Federal Republic of Germany, with designs including the 1950s DB class V 200, and the 1960 and 1970s DB Class V 160 family. British Rail introduced a number of diesel hydraulic designs during it 1955 Modernisation Plan, initially license built versions of German designs (see ). In Spain RENFE used high power to weight ratio twin engined German designs to haul high speed trains from the 1960s to 1990s. (see RENFE Classes 340, 350, 352, 353,
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