The Budd Company entered the market in 1932, just as EMC exited. Up to that time Budd was primarily an automotive parts subcontractor, but had pioneered working with stainless steel, including the technique of shot welding to join pieces of stainless steel. This permitted the construction of cars which were both light and strong. Budd partnered with Michelin to construct several rubber-tyred stainless steel rail cars powered by gasoline and Diesel engines. These saw service with the Reading Company, Pennsylvania Railroad, and Texas and Pacific Railway. The cars were underpowered, the tires proved prone to blowouts and derailments, and the cars were unsuccessful.