The State of the German Automotive Industry in August 1945

The Nazi's are always misrepresented as being extreme capitalists, when in fact they were extreme socialists. Shortly after coming to power in 1933, they established the 'Wirtschaftsgruppe Fahrzeugindustrie' (abbreviated to Wigrufa) to govern and coordinate the automotive industry. In 1938 the Nazis undertook a comprehensive 'reform' of the auto industry under the Schell Plan. Under the plan 114 truck types were reduced 19 standard types and 52 car types reduced to 30. Many smaller companies were shut down or instructed to manufacture other products. From now, company heads were effectively plant managers, answerable to the government. The purpose of these 'reforms' was of course nationalisation of all German industry in order to better marshal Germany's scarce resources for military production. During the war, the Wirthschaftsgruppe Fahrzeugindustrie came under the direct control of the Reich Minister for Armaments and War Production. Agents from Wigrufa would be constantly assessing the state of the industry throughout the war.

In February 1945, with Germany in ruins and the Allies advancing on all fronts, Reich Minister Albert Speer gave the Wigrufa team permission to evacuate Berlin with their records. Given the state of affairs, this may seem odd, but Speer and the Wigrufa team clearly believed that the records and analysis they had compiled since 1933 would be critical to rebuilding Germany's auto industry after the war. It's a very bureacratic view of the importance of paperwork, but then they were German bureaucrats.

One of the team members, with their initial survey of the state of the German automotive industry in the months after the end of the war, would document the team's trials and tribulations as they struggled through the war's end. It makes very interesting reading about the chaotic and hazardous state of affairs as the Third Reich fell apart and the Allies advanced through Germany in April 1945.

“On Easter Monday, April 2, 1945, an advance detachment was sent by train to Zorge. Furthermore, the Büssing company was asked by telephone to send a truck to Goettingen to transport our material and luggage. In order to keep the goods to be transported as small as possible, on Tuesday, April 3, 1945, the first group, mainly women, with bicycles and luggage, set off for Zorge, followed the next day by another group. Since the truck from Büssing did not arrive (it turned out later that it had been sent to Göttingen but did not reach us due to a misunderstanding), a wagon was found on the night of April 3rd and 4th with the help of Colonel Zugeh, procured from the Wehrmacht. On Wednesday, April 4th, this wagon was loaded with great difficulty, leaving behind the eight hundredweight printing machine, which could only be transported with special equipment. The carriage, with which the other ladies and gentlemen also drove, connected with the scheduled passenger train to Northeim and left Goettingen on April 5, at 4 a.m. A few hours later, the train station in Göttingen was completely destroyed by an air raid. On its way to Zorge, this wagon only narrowly escaped the bombardment several times. It only arrived at its destination on the evening of April 7, after a journey of more than 60 hours.

We had scarcely settled in Zorge when the front approached our area. On April 10, 1945, Zorge was heavily attacked by fighter-bombers, on April 11 the noise of the battle steadily increased, and on April 12 we were forced to leave our accommodation because of artillery fire and to move to the nearby forest. We then lived and slept in the forest for five days because the front got stuck just before Zorge and there was heavy artillery fire over the area. During this time we were first in the German main battle line, defended by SS troops, and later between the two fronts.

On April 17, the Americans finally advanced to the town of Zorge, although the Lothringen Mining Company, which was a little out of the way, remained unoccupied. Our hope that the danger was now over was not confirmed, because on April 18 looting by released foreign workers began on a large scale. Poles and Russians also forced their way into our accommodation and stole a number of our bicycles without giving us a chance to defend ourselves. Since there was a great danger that all our belongings would be lost in this way, Herr Vorwig got in touch with officers of the nearest American company and managed to get three American soldiers to guard our room at all times. This saved us from further looting, while most of the houses around us were completely emptied.

Gradually peace and order were restored. However, our biggest concern now is the question of food. Since Zorge is in a subsidy area, the situation looked threatening at first. We lived for a few weeks mainly on the leftovers of potatoes and vegetables that we found in the abandoned Russian barracks, until conditions improved again in this area and we were supplied to some extent with the support of the mayor.

With regard to our ability to move, we were very hampered by the fact that the two Volkswagens that we had taken to Zorge were forcibly confiscated by the SS and taken away during the last few days. The first journeys were therefore made with bicycles, tractors and trucks.

Zorge had been taken by the Americans and therefore initially received American garrison. On May 31st there was a change. The Americans retreated and made way for the English. Since then, the area has belonged to the English occupation zone.

Our supply situation was significantly improved by a transport of groceries, which the Büssing company sent to us on June 2nd through the mediation of Mr. Schirz. In the years that followed, Büssing helped us several times in our difficult situation in this area. On June 15, Mr. Vorwig drove together with Mr. Nordhoff to the headquarters in Frankfurt/Main (SHAEF: Supreme Head-Quarter Allied Expedition Forces). There Mr. Hoglund was told to be available for questions relating to the automotive industry. Mr. Hoglund is from General Motors. Until 1941 he was a member of the board of directors of Adam Opel AG. It was a good thing that Mr. Nordhoff was better acquainted with Mr. Hoglund from his work at Opel.

It appeared from the discussion that Mr. Hoglund was the head of the commission which had paid us several visits and that all our documents had been sent to him. He expressed his particular satisfaction with the last draft we submitted, which gave a good overview of the German automobile industry, its situation and proportions. Mr. Hoglund asked many very detailed questions about the workings of the Business Group and the General Committee and expressed his belief that some form of automotive industry organization should continue to operate. However, he states that certain assurances in this direction or positive support are not yet possible at the moment. It would take time to settle things.

For the rest, however, it emerged from the conversation that the American military government would encourage the restart of the automobile industry, or at least not make it especially difficult. It has not been possible to determine what position Mr. Hoglund will hold or what his duties will be in the future. He worked in the Production Control Commission, as a civilian apparently in the capacity of an adviser on automotive issues.

On his return to Zorge, Mr. Vorwig found Dr. Hufenbecher and Renken with the view that they would soon start the trip to southern Germany that had already been planned during the first visit.

The journey began on June 30 and lasted until July 8, 1945. It first went to Neckarsulm to visit the NSU and the German Fiat works in Heilbronn. In Neckarsulm, we were urgently advised not to continue our journey to Stuttgart, which was still under French occupation at the time, since the confiscation of vehicles and the arrest of adult men capable of work were the order of the day there. We decided to make the trip anyway and got into the French zone fairly smoothly. The image of the occupying forces changed abruptly to the unfavourable side, in particular the large proportion of Moroccans in the French occupying forces.

We then went to Baden-Baden to visit Director General Werners, who had also suffered greatly under the occupation. His house had been confiscated several times and at the time of our visit it was partly occupied by a French officer. The nutritional conditions in Baden-Baden are very unfavorable, since the French take everything away. Almost all private cars in French-occupied territory have been confiscated. Our own car twice escaped confiscation with difficulty. On our return from French-occupied territory, we were universally admired for the good fortune we seemed to have had. As long as these conditions remain as they are, we must urgently advise against traveling by motor vehicle to the French-occupied zone.

On July 8th we returned from this trip to Zorge, where the Russian border had moved 400 meters closer to our quarters due to the change in the occupation zones. After only two days, rumours surfaced that Zorge was also to become Russian, because the only railway line that supplied the area around Zorge was cut off by the Russians capturing the nearby town of Ellrich. The rumours spread to such an extent that Herr Vorwig went to see the military government in Braunlage, pointing out the importance of our documents and asked for reliable information. It could not be given. However, it became clear from the conversation that negotiations were actually in progress towards the transfer of Zorge. We then made the decision to evacuate our quarters in Zorge as quickly as possible. Messrs. Schmitz and Schwinges went on bicycles to explore new quarters in Klein-Rhüden, where at the time Herr Althaus, representative of the Bilstein company in Berlin, had found accommodation, and where Professor Kössler from Braunschweig works as deputy mayor. The gentlemen came back with a positive decision, and we then decided to start the transport immediately.

Meanwhile the original rumour that Zorge was going to be Russian had not turned out to be true. Nevertheless, there is constant movement in the borders between the Russian and English areas in this area, so the measures taken for resettlement can still be regarded as absolutely correct today. We received a promise from the military government that they would notify us in good time of a possible Russian invasion.

Again Mr. Schirz came to our aid with a Büssing truck. This time it was a good thing that Büssing was also in the process of transporting away his machines and material, which had been moved to Zorge, because of the Russian threat. All of the things that we didn't absolutely need, files and the personal luggage of the members of the entourage who were no longer with us were sent to Braunschweig as an additional load, where Herr Schirz agreed to store it in a safe place. A trailer was made available to transport the other items to Klein-Rhuden, which left on July 15.

Apparently, the military government had become aware of us through our enquiries. We were forbidden to leave Zorge with our important files and the gentlemen of our office who were to be employed in the future commission. An English commission also appeared, which wanted more detailed information about our activities and the documents we had brought with us.

On July 20, an American commission unexpectedly arrived, consisting of a captain and a civilian who turned out to be a Frenchman in the service of the American army. This commission requested information on a number of questions relating to the automobile industry in American-occupied territory. She proved to be consistently very knowledgeable about our firms in the occupied territory. She had apparently visited most of the works.

Apparently it was the fact that this commission was looking for us and had made inquiries of senior British officers both in Goslar and in Braunlage that drew the attention of the English to us. Mr. Vorwig was suddenly arrested on July 21, sent to Braunlage and interrogated there by the Secret Service. However, it was then explained that he was not under arrest. On the contrary, the behaviour of the English was quite correct. Herr Vorwig was dismissed with the remark that he should be ready to leave with an English commission in the next few days to give further information.

A few days later Mr. Vorwig was picked up again and taken to Goslar. However, he was then released without being interrogated because, oddly enough, it could not be determined who had requested him or where he was to be taken.

On July 22nd, the English commission, which had visited us before, came again with a light truck and picked up all the files that we had kept in 7 boxes. Our multiple requests to agree to the relocation of the remaining followers to Klein-Rhuden were categorically rejected each time. The reason for this was not apparent, especially since Klein-Rhüden is also in English-occupied territory. Our luggage had shrunk so much that, in an emergency, we could have left Zorge on foot.

On July 27, 1945, As agreed, Dr. Hufenbecher arrived in Zorge in his car for the second trip to southern Germany. The journey led back to Zorge via Schweinfurt, Neckarsulm, Heilbronn, Stuttgart, Heidenheim, Ulm, Nuremberg and Kassel.

Here is a brief report on the status of the passenger car, motorcycle and bicycle factories to the extent that we have personally visited them. Most of these visits were made by Dr. Hufenbecher together with Mr. Vorwig.

ADLER, FRANKFURT on MAIN

Mr. Hagemeier is to be arrested in early August. Mr. Sörensen continues to work at the plant. Initially, permission was given to manufacture bicycles, typewriters and spare parts. At the moment there are 120 employees and 680 workers, who are mainly engaged in cleaning work. In October, however, one hopes they will be able to complete their first bicycles. The facilities expect a total production of 240,000 bicycles per year. The resumption of passenger car construction is very difficult because Ambi-Budd is not available as a body supplier. All the [panel] dies are there, so another supplier cannot easily be substituted. The intention is to resume building the Adler-Trumpf-Junior, but with a new 1.2-litre engine and other improvements. By the end of the year, the number of workers is to be increased to 1,500 people - 25 percent of the planned maximum number of 6,000 workers. It is hoped to reach 50 percent by the end of June 1946 and 100 percent in 1947.

ARDIE

The operations manager, Mr. Petzold, started initially with vehicle repairs at the plant. At the beginning of August, approval to restart motorcycle construction was not yet available. However, it will likely be given. The 125cc model is to start. There were 110 workers and employees compared to 600 previously.

BMW, MUNICH

The Eisenach plant was lost due to the expansion of the Russian occupation zone. Mr. Schaaf, who is still located at Heidenheim a.d. Brenz, Kellerstrasse. 14, and is not allowed to leave the city, reported that the Munich plant is practically at a standstill and that the substantial bank deposits have been confiscated by the Americans and their design drawings are being taken away. Mr Papp, Mr Hille and Mr Zipprich are in custody. It is therefore not possible to resume work for the time being.

BORGWARD, BREMEN

Approval has been given to commence manufacturing 1,200 3-ton trucks. Furthermore, trailer construction is to be resumed. Since the Hastedt plant was almost completely destroyed, production only runs at the Sebaldsbrück plant, where some halls can still be used and the production area can be significantly expanded through reconstruction. A total of 1,500 men are now employed at Borgward. Mr. Borgward himself and the other leading gentlemen are still in office.

It is interesting that to cover start-up and reconstruction costs, the military government approved a 50 percent surcharge on the price of the 3-ton truck. The vehicle is now being sold at RM10,900. A deposit of 50 percent will be charged upon conclusion of the purchase contract, which is used for interim financing.

DAIMLER-BENZ, STUTTGART-UNTERTÜRKHEIM, GAGGENAU AND MANNHEIM.

Dr. Haspel, who has been appointed President of the Stuttgart Chamber of Commerce and Industry, was very positive about the future of the automotive industry and his plant. The winter will be very difficult due to the lack of coal, and the start of actual series production can only therefore be expected in the spring of next year. However, it was undeniable that industry would face great challenges. That is why Dr. Haspel anticipates a great shortage of workers, even in the future.

The Untertürkheim plant is largely destroyed. However, it is being cleaned up and rebuilt to a significant extent. Before the end of this year, 70,000 square meters of the previously available 210,000 square meters of production space should be available again. The production of the 1.7-liter car, initially as a delivery van, is being prepared. A provisional building permit has now been issued. The manufacture of passenger car bodies causes difficulties because the Sindelfingen plant was completely emptied during the French occupation. Only the pressing shop is still complete because the machines could not be transported due to their size and weight. But work has already started again in Sindelfingen, too, with driver's cabs being manufactured for the Mannheim plant.

The Gaggenau plant was badly damaged, but the engine line for the 4.5 ton truck was completely intact due to a relocation operation [wartime relocation of critical plant and machinery to a safer location]. Considerable construction work is still had to be done before chassis construction could be restarted. It is intended to resume construction of the 4.5 ton truck as soon as possible.

HERCULES, NUREMBERG.

The manager, Mr. Eibelmeyer, intends to manufacture mopeds and motorcycles in addition to bicycles. The production of bicycles has already started again. However, as everywhere in Nuremberg, the procurement of tyres for bicycles causes great difficulties. Continental's Korbach plant has not yet restarted the production of bicycle tyres. At present, 100 workers and employees are employed in the factory.

NSU, NECKARSULM.

Herr von Falkenhayn was arrested shortly after the Americans marched in and taken to Augsburg. However, he was treated well there and hoped to be free again soon. Dr. Bücken, like the other managers, is still active in the factory. During the last weeks of the war, the factory was badly damaged by bombing and also by artillery fire. Immediately after the occupation, the Americans claimed the plant for repairs and the factory management was not allowed to enter it. In this way, protective measures for the machines standing under the destroyed roofs could not be taken. This caused considerable weather damage. Recently, however, the plant has been released for entry. The Americans now only claim a certain part, which is not necessary for the resumption of production.

Permission has been granted for the manufacture of bicycles, mopeds, 125cc motorcycles and generators. The production of bicycles has probably already started. 50,000 pieces have been built. A series of 10,000 of the 'Quick' motorbike and a series of 5,000 of the 125cc motorbike are in preparation. The construction of generators is to be based on Imbert's patents. When the program runs to completion, 1200 workers and 150 employees are to be employed.

The military government has also shown an interest in the Kettenkrad for use in forestry. Approval for the construction of 200 Kettenkrads, for which the parts are essentially available, has been granted. There is hope to be able to manufacture more Kettenkrads.

OPEL, RUSSELSHEIM.

At Opel, the invasion passed without additional damage to the plant. Soon after the occupation, the Military Government, represented by Mr. Hoglund, came to the factory, took a great interest in the condition of the factory and the financial situation, and gave instructions that rebuilding and production should begin as soon as possible. Mr. Wagener then decided to prepare the production of the 1.5 ton truck, since the facilities for this are essentially available in Rüsselsheim. Material, parts and additionally components and tools required for 5,000 wagons are to be ordered. The start of production depends on the energy question. The long-distance gas supply, which is absolutely necessary for the operation of the [steel] forge, is not working yet. The question of coal for the plant is also unresolved. A date for the restart of production can therefore not yet be given. The orders for the reconstruction of the plant, which shows about 60 percent building damage and 10 percent machine damage, have already been assigned to companies. However, the construction work is progressing slowly because of numerous difficulties.

Later, as Mr. Wagner announced, the construction of the Olympia car will also be resumed. The production line for the Olympia engine, which was relocated to Mainz during the war, is now in the French occupation area and is therefore not readily available. The news from the Brandenburg plant is that the Russians are taking away all the machinery and equipment. Mr. Nordhoff, the manager of the Brandenburg plant, has now taken on new tasks in Rüsselsheim. Mr. Bangert, Mr. Jacob and Mr. Gädertz are still working in Rüsselsheim. There are currently 2,600 workers at Opel.

STANDARD, PLOCHINGEN.

Mr Gutbrod was not present when we visited. He is currently in the hospital. The factory suffered no damage and started work again very soon after the occupation. Lawnmowers are manufactured and production of the standard 3-wheel delivery van is to be resumed. 120 workers were employed at the beginning of August.

TRIUMPH, NUREMBERG.
The factory is very little damaged. It has approval to start production again on the 'rawer' program, which means it's allowed to build bicycles, motorbikes and typewriters. This approval was initially given with the restriction that only existing material would be used, however, it had already been possible to bring in material transports from abroad. The bicycle and typewriter production was running at the beginning of August, as was the production of the 125 cc motorcycle in large numbers. The second type of motorcycle is to be either a 250cc or 350cc machine. 340 workers and employees were employed at the beginning of August. This number is to be gradually increased to 1,000 workers and employees (compared to 2,100 before the war).

VICTORIA, NUREMBERG.
The company has been largely destroyed. Repair work is only being carried out to a limited extent in one part of the factory. The leading gentlemen were also not found, so we could not make any more precise determinations.

VOLKSWAGENWERK, FALLERSLEBEN.

The Volkswagen factory, which Mr. Brörmann is now at the helm of, has received an order from the military government to build 20,000 vehicles by July 31 next year, some of them as delivery vans for the Reichspost, the rest in the normal sedan version. The intention is to build another 5,000 cars by the end of this year. 2,600 people are currently employed.

ZUNDAPP, NUREMBERG.
Mr. Neumeyer had applied for the manufacturing license for spare parts, for mill construction, for stationary engines and motorcycles. He intends to eventually produce spare parts for Auto Union vehicles. Special preparations are being made for the new start of mill construction, which Mr. Neumeyer wants to take up together with an expert in this field. Stationary engines with an output of 15 hp, which were previously built for the Luftwaffe, are to be used for road construction machines, especially road hammers.

At the time of our visit, the plant was in the process of repairing trucks and machine tools. Household items were also made. The bombing damage is considerable, amounting to 35 percent for the buildings and 40 percent for the machines.

Shortly before the Second World War, in 1939, there were still 11 companies in Germany that sold cars. produced: Adler, Auto Union, BMW, Borgward, Daimler-Benz, Ford, Hanomag, Maybach, NSU-Fiat, Opel and Stoewer. With the exception of Adler, Hanomag, Maybach and Stoewer, all companies will resume passenger car production after the war. This also includes the Volkswagen factory, whose products have so far only been delivered to the party, the state and the military.

In order to stimulate the previously state-controlled economy, the Allied Control Council issued an 'industrial plan' in 1947, which allowed the German economy to be rebuilt, albeit with one not inconsiderable restriction: productivity was to be frozen at the 1938 level. There were even detailed plans for many assets. The Germans were supposed to get by with just two types of cars and produce no more than 40,000 passenger cars, 40,000 trucks, 10,400 motorcycles and 14,000 tractors a year.

However, since the 'Bizonal Commission for the Vehicle Industry', which later became the Association of the German Automobile Industry (VDA), had been constituted, competent experts demanded far higher contingents for motorcycles and motor vehicles, far ahead of the plan. In 1938 the number of motorcycles in Germany was 45.5 percent of the world number. Production was 327,540 units, equal to 65 percent of the world production of 500,000 units. In the rich, highly motorized countries, the motorcycle is essentially viewed as a luxury item because those sections of the population who need a motor vehicle for professional reasons have the means to own a passenger car. In Germany, however, due to the generally unfavorable income situation and the very high cost of owning a car, for many people the motorbike was the only way to carry out the motorization necessary for reasons of earning a living.

These conditions are still valid for the future. For this reason, the motorcycle has to be given a larger share of production in Germany than the average in the other countries. It is proposed that the production of motorbikes and motorbikes with a capacity of up to 100 ccm should not be subject to any restrictions and that the upper limit for motorbikes with more than 100 ccm be set at 100,000 units.”

These overly ambitious plans would not come to fruition. While some companies managed to restart small-scale production, largely from prewar stocks of spare parts, the damage to plant, production machinery and a collapse of raw material supply, a return to full production was unsustainable. Only the Volkswagen plant with it's contract for 10,000 vehicles for the British Occupation Forces was able to grow successfully restart production.

Obviously this assessment does not take into account the state of affairs in the Soviet Occuptation Zone, where the factories of Auto-Union were. Nor was there any western Auto-Union at this time. That would be constructed from the ground up in 1946 and 47 and is covered here - For the unlikely resurrection of Auto-Union: https://dkwautounionproject.blogspot.com/2020/05/collapse-and-reconstruction-history-of.html

For the resurrection of the state owner IFA F9: https://dkwautounionproject.blogspot.com/2020/07/the-development-of-ifa-f9.html

For the death and resurrection of Volkswagen: https://heinkelscooter.blogspot.com/2015/04/the-death-and-resurrection-of-volkswagen.html