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Why did ALCO go out of business?
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<p>I'm pretty sure that one of the reasons ALCO went out of business as a diesel manufacturer was because they were the best <em>steam </em>locomotive builders in the world.</p><p>EMD and GE got a jump on the market- by building and developing diesels from the start. ALCO had some road diesels out there right before and during WWII- the DL109 comes to mind- but their major focus was steam. It didn't help ALCO any that the government restricted development of new locomotives during the war. It also didn't help ALCO that GE did the electrical work.</p><p>They survived longer than the other manufacturers did who stuck to steam. Where now the Baldwins, the Limas? </p>
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