Post-war Diesel Competition
Following the Second World War, MLW and other locomotive builders reverted to building locomotives. MLW continued to benefit from Canada's restrictive trade policies which prevented a flood of U.S. imports. However, the switch from steam to diesel-electric locomotive production opened the door to new competitors. In 1949, the Electro-Motive Division of General Motors established a Canadian subsidiary named General Motors Diesel Division (GMDD) in London, Ontario. MLW's long-established steam locomotive competitor, the Canadian Locomotive Company (CLC), had also entered into a partnership with Baldwin and imported and produced the designs of Baldwin and its subsidiary Whitcomb. Westinghouse was the main supplier of Baldwin's electrical transmission components. After Baldwin folded, CLC became a licensee of Fairbanks-Morse and manufactured a number of F-M designs for the Canadian market, including the famous Train Master. CLC was also responsible for building General Electric industrial switchers. General Electric did not enter the road diesel-electric market in the U.S. until the late 1950s, a move it took after dissolving its partnership with ALCO in 1953.
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