The Erie-built was the first streamlined, cab-equipped dual service diesel locomotive built by Fairbanks-Morse, introduced as direct competition to such models as the ALCO PA and FA and EMD FT. F-M lacked the space and staff to design and manufacture large road locomotives in their own plant at Beloit, Wisconsin, and was concerned that waiting to develop the necessary infrastructure would cause them to miss out on the market opportunity for large road locomotives. Engineering and assembly work was subcontracted out to General Electric, which produced the locomotives at its Erie, Pennsylvania, facility, thereby giving rise to the name "Erie-built."