ALCo had been the second-largest producer of steam locomotives, and was moving into diesel traction, but needed help to compete with the newly-emergent GM Electro-Motive Division.

In the partnership, ALCo built the locomotive bodies and prime movers, while GE supplied the electrical gear as well as marketing and servicing infrastructure.

In the spring of 2007, GE Transportation Systems rolled out a prototype hybrid diesel–electric locomotive to increase fuel efficiency and reduce emissions.

[5] On July 27, 2017, GE Transportation announced that all production of locomotives would move from Erie, Pennsylvania, to Fort Worth, Texas, by the end of 2018.

[7][8] In November 2015, French multinational Alstom, which now specialises in rail, acquired GE Transportation's Signaling & Train Control division.

GE’s battery business serves the rail, marine, telecommunications and energy sectors, including new smart grid technology.

It underwent various tests throughout 2021 to see the feasibility of a fully battery powered locomotive on the California main lines[15][needs update]