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Private investors affiliated with asset management firm Value Recovery Group Inc. (VRG) recently acquired the former Colorado Railcar Manufacturing L.L.C. diesel multiple unit (DMU) and plan to resume manufacturing the self-propelled passenger cars in a new U.S. manufacturing facility to be established later this year.

VRG formed US Railcar L.L.C., which will retain the acquired Colorado Railcar DMU proprietary rights and information, manufacturing documentation, inventory, tooling, fixtures/jigs and other production equipment.

“There is a major commitment by the Obama Administration and Congress to make investments in intercity and high-speed rail to promote economic growth and mobility, create jobs, conserve energy and address climate change,” said VRG Chairman and Chief Executive Officer Barry Fromm in a prepared statement. “This opens a new era for passenger trains and rail-car manufacturing in the United States.”

VRG appointed Michael Pracht president and CEO of US Railcar. He previously held various key positions at Siemens and Ansaldo STS.

US Railcar plans to manufacture both single- and bi-level DMUs designed to operate in all mixed-mode U.S. freight corridors. US Railcar’s DMU is the only Federal Railroad Administration-compliant DMU operating in North American revenue service, according to VRG.