The
American Rail Company, commonly known as
Arco, is a major American engineering and industrial conglomerate specializing in the production of railroad infrastructure such as locomotives, rolling stock, power trains, wiring and design consultancy. As of 2023, it is the second-largest rolling stock producer in the world and the largest freight locomotive producer.
The company was founded via a merger of several smaller producers in Schenectady in 1901 as American Locomotive Company, commonly referred to as ALCO, and grew enormously in the 1910s and 1920s thanks to production needs during the Great American War and under the leadership of CEO Walter Chrysler. The company reorganized with its public offering in 1932 and during the rail modernizations and electrifications of that decade and those thereafter rapidly expanded, pushing several competitors out of business or into the transit rolling stock business, where Arco's share is much smaller. Arco signed an exclusive contract with the USRA in 1966 to supply all high-speed railsets for the new Amrail program starting in 1970, which was upheld in the landmark antitrust case
Budd-Pullman v. American Rail. Since then, Arco has been one of the major global producers of high-speed rail rolling stock, with products used not only in the United States but in Asia, Latin America and, starting in 2022, Africa. The company in the 1990s suffered bad press for several safety concerns after prominent derailments and complaints about faulty electric power trains that minimized speed and operability, and has been accused of acting as an illegal monopoly.
Arco's headquarters were shifted to Albany in 1972 and moved again to downtown Columbus in 1999, but major production and engineering facilities remain in Schenectady, and additional factories are currently in Buffalo, Cincinnati, St. Louis, and Phoenix, as well as its East Asian production facility in Busan, Korea. In 2023, it was rated as the 48th most valuable American firm and its 4th most valuable in the transport and logistics space.
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