Foundation of Motoren-Werke Mannheim A.-G.

Due to the economic crisis back in the day and other reasons, Benz & Cie. sold its Stationary Engine Building department in 1922. Under a spin-off agreement, the department was sold to a buyer who intended to continue building engines in the old Benz factory. After the sale was finalized under the spin-off agreement dated April 22, 1922, the stationary engine production became independent from Benz & Cie. and started operating under the name “Motoren-Werke Mannheim A.-G. vorm. Benz, Abt. stationärer Motorenbau”.

Subject to certain restrictions in terms of the power-weight ratio, Motoren-Werke Mannheim A.-G. was permitted to continue to use the prechamber patents. The production of vehicles with diesel engines, too, was restricted: The company was not allowed to sell vehicle engines with a power-weight ratio of less than 25 kg/hp. Moreover, another clause in the spin-off agreement stipulated that “when using the company name on signs, printed material, posters, products or otherwise, the addition ‘vorm. Benz Abt. stationärer Motorenbau’ shall never be expressed in larger letters or in an otherwise more conspicuous way than the remaining part of the company name”.