Why did ALCO go out of business?

[Ulrich]

That makes sense...it looks as if MLW did try to turn things around after the M series failed by introducing the HR series (HR stood for High Reliability)...but apparently they weren't so reliable, and when they failed to catch on MLW got out of the domestic market.

The writing was pretty much on the wall when BC Rail (an all MLW fleet) bought SD40-2s. Clearly they were nolonger happy with the Montreal product.  

[scottychaos]

 

 I guess MLW thought they could turn things around by purchasing the Alco designs and continuing the line in Canada for another seven or eight years. As I understand it the M630s and 636s were unreliable also although both CN and CP ran them until the early 1990s.

 

It wasnt really a case of MLW "purchasing the Alco designs"..they already had them! MLW had been building Alcos since 1904! ;) steam and diesel..they were basically a subsidiary building site, building the same Alco designs that were designed in Schenectady..Schenectady was always the "home office"...so instead of saying "MLW thought they could turn things around by purchasing the Alco designs and continuing the line in Canada for another seven or eight years." it would be more acurate to say "MLW continued to build the Alco designs in Canada for another seven or eight years, because they still had willing customers with the Canadian railroads."

I dont know if MLW ever thought they could "turn things around" or not..probably not.

they did some minor R&D after 1969, but didnt work on any major new ideas..they essentially just kept the line going a few more years because they still had the customers.

Scot 

 

[CSSHEGEWISCH]

Among the other factors mentioned above, Alco never really recovered from the problems that came with the 244 engine.  Once a negative reputation has been established, it's very difficult to recover from it.  The 251 engine is a good engine, and can still be found in a variety of non-railroad uses, it's just that Alco's sales were never good enough to carry the company while the 251 established it's own rep.

[Ulrich]

Thanks Scott...Steve Lee (Of UP steam locomotive preservation fame) had a rather humorous article in Trains a few years back about his days with IC and his experiences with the C636 diesels.  

 I guess MLW thought they could turn things around by purchasing the Alco designs and continuing the line in Canada for another seven or eight years. As I understand it the M630s and 636s were unreliable also although both CN and CP ran them until the early 1990s.

[scottychaos]

There were lots of factors, but the short story is that GE, who was once a partner in Alco's diesel building, turned competitor when they came out with their own line of road diesels, starting with the U25B in 1960.

Alco just couldnt compete, EMD and GE made better products during the 1960's, Alcos had more maintance issues that EMD and GE locos of the time, and the railroads chose to buy the more reliable product..

Alco didnt "choose" to go out of buisness..they didnt have a choice. they closed shop in 1969.

The "last-gasp" of Alco, the Century series, were good engines! and as you said, many short lines are still running them today..they were good, just not "good enough"..Alco became the number three builder during the 60's, and the market couldnt support, and didnt need, three builders.

Scot

[Ulrich]

Did they make a decision to get out of the locomotive business or was there a problem with the locomotives they built (or something else)? Several shortlines today run nothing but ALCOS (or MLWs)...like the Ottawa Central and the Arkansas and Missouri. Nobody runs GE U Boats anymore yet GE has become the number one locomotive builder.