Made in Germany: History of the German Car Industry

1899 – Sales growth births the automotive market

The popularity of cars and engines made by Benz & Cie. grew rapidly, and they needed to make more of them. So, they expanded their factory, and by 1899, they were the biggest car manufacturer in the country. They had 430 employees and made 572 cars that year.

1900 – Global market growth

Around 1900, cars became very popular and started being produced on a large scale in France and the United States. Countries like Belgium, Switzerland, Sweden, Denmark, Italy, and Australia also started developing their car industries. In Germany, they were producing about 900 cars per year at that time.

Early 1920s – Global challenges

In the early 1900s, German companies created great car designs that people loved. However, they couldn’t make enough of them to keep up with demand. This gave American companies, like Henry Ford’s car factory, a chance to step in and make their cars.

The American companies also liked the German car designs and saw potential. So, Ford opened a successful factory in Germany in 1925, and General Motors bought a German car company in 1929.

However, the car industry faced some tough times, especially during World War II, which hurt the German economy. Before the war, there were 86 car companies in Germany, but only 12 of them survived the Great Depression and the war.