UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549



                                    FORM 8-K



                                 CURRENT REPORT
                        Pursuant to Section 13 or 15 (d)
                     of the Securities Exchange Act of 1934


         Date of Report (Date of earliest event reported): March 2, 1998


                         Commission file number 0-23802



                          MOTIVEPOWER INDUSTRIES, INC.
             (Exact name of registrant as specified in its charter)



         DELAWARE                                      82-0461010
(State or other jurisdiction                      (I.R.S. Employer
      of incorporation)                           Identification Number)


              1200 Reedsdale Street, Pittsburgh, Pennsylvania 15233
               (Address of principal executive offices; zip code)


                                 (412) 237-2250
                (Registrant's Telephone No., including area code)





Item 5. Other Events

     On  March  3,  1998,   MotivePower   Industries   (the   Company)  and  the
Electro-Motive Division of General Motors formed a strategic alliance to design,
manufacture and market  low-horsepower,  switching and branchline locomotives in
the  United   States,   Canada  and  Mexico.   MotivePower   Industries  is  the
third-largest manufacturer of locomotives in NAFTA.

     Under a marketing and supply agreement,  Boise Locomotive,  a subsidiary of
the Company,  will be the exclusive  manufacturer  of  Electro-Motive's  private
brand,  1,500- and  2,000-horsepower  locomotives  for the NAFTA  market.  Boise
Locomotive  will also continue to market other DC- and  AC-traction  locomotives
under 4,000 horsepower under its own brand name and possibly the  Electro-Motive
Division brand.  Boise  Locomotive  believes that through the alliance it may be
able to achieve sales of 10 locomotives in 1998 and as many as 30 units annually
by the year 2000.  This is a  forward-looking  statement and the actual  results
could  differ  materially  from the  results  suggested  in any  forward-looking
statements. Factors that could cause or contribute to these material differences
include,  but are not limited to, the following:  a general decline in the NAFTA
economy, which could cause a decrease in rail traffic;  continued  consolidation
by U.S.  railroads,  which  could  cause them to reduce  purchases  of goods and
services; and the ability of the strategic alliance partners to create increased
market demand for low-horsepower  locomotives.  In making these  forward-looking
statements,  the  company  assumes  no  obligation  to update  them or advise of
changes in the assumptions on which they were based.

     On March 2,  1998,  MPI de  Noreste  S.A.  de C.V.  ("MPI  de  Mexico"),  a
subsidiary of the Company,  signed a new, 17-year contract in Mexico,  valued at
$419 million.  The new agreement replaces a previous contract that had six years
and approximately $177 million in revenues remaining. Under the new





contract  with TFM S.A. de C.V.,  MPI de Mexico will  overhaul  and maintain 168
locomotives at its San Luis Potosi facility in the Northeast region of Mexico. A
joint venture of  Transportation  Maritima Mexicana S.A. de C.V. and Kansas City
Southern  Industries  Inc., TFM was awarded a 50-year  concession to operate the
Northeast  region of the  National  Railways  of  Mexico as part of the  Mexican
government's  program to  privatize  the rail  system.  

     In addition to the 168 locomotives covered under the new TFM contract,  MPI
de  Mexico  provides  fleet  maintenance  on  151  other  units  under  separate
multi-year  contracts with TFM and other customers in Mexico, for a total of 319
locomotives.

                                    SIGNATURE

     Pursuant to the  requirements  of the Securities  Exchange Act of 1934, the
Registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned hereunto duly authorized.


                                             MOTIVEPOWER INDUSTRIES, INC.
                                                      (Registrant)


                                             By: /s/ William D. Grab
                                                 ------------------------------
                                                 William D. Grab
                                                 Vice President, Controller and
                                                 Principal Accounting Officer

                                                 March 4, 1998