By the late 1980′s, Germany’s regional railroads were in dismal shape. They suffered many of the problems we face in the US — antiquated locomotive-hauled trains, and inefficient operating practices. It seemed inevitable that these lines would either be abandoned, or stagger on with ridiculous subsidies — much like Amtrak.
Then came German reunification, the 1993 railway reform act, and huge changes in the organization of Deutsche Bundesbahn, the former National Railway:
In the next 5 years, DB will invest about DM7,000 million in new and modern short-distance rolling stock. The entire fleet will be replaced modernized before the end of the century. Three hundred lightweight powered railcars have already been ordered within this program — the largest investment in German railway history. These cars are about 30% lighter than conventional cars. In addition, they are constructed mainly from proven components used in buses. They still cost more than a bus, but are equivalent in terms of maintenance expenses.
These cars are a decisive step to become able to compete with the automobiles and buses on side tracks at low loads. Many side tracks — especially in the new states of the Federation — which were hardly profitable because trains were drawn by locomotives, are enjoying a renaissance. The cars reach an average maximum speed of about 130 km/h and present a real alternative to the automobile.
These modern DMU operations have been wildly successful, and emulated all over Europe. A 2007 paper, published by Dietmar Bosserhof, looks at ridership gains from dozens regional rail projects. The entire paper is worth reading, but here is the money graph:
These ridership numbers are from a regional railway near Frankfurt. As you can see, ridership gains of 10x were achieved with targeted improvements in ticketing, frequency, and rolling stock.
Colorado Railcar has come out of bankruptcy. American Railcar Industries, a St. Charles, Mo.-based freight car manufacturer owned by investor Carl Icahn, 
