!!!Auto- und Motorradindustrie

Automotive and Motorcycle Industry (motor vehicle industry): The first 
functioning automobiles in Austria were constructed as prototypes by 
S.  Marcus in 1864 and 1888; these wooden wagons with built-in motors 
already possessed all of the technical characteristics of a passenger 
automobile. Marcus was the first to use gasoline as fuel.

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In the  Lohner-Werke (automotive works), F.  Porsche raised motor-car 
manufacturing to the level of an industrial production process. In 
1898 Porsche invented the wheel-hub engine (electromobile system); he 
also invented four-wheel drive and electric ignition for 
carburettor-type petrol engines. Along with the Lohner-Werke, the 
company  Graef & Stift began manufacturing motor-cars around 1900, as 
did Daimler in Wiener Neustadt and Puch in Graz.

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During World War I, lorry production was mainly driven by the 
military. From 1899 J.  Puch constructed his first motorcycles, which 
went into industrial production in 1903. At first, they served sport 
and military purposes. Due to the high capacity of the existing 
manufacturers in Austria, many brands were produced after 1918; in 
accordance with demand, cyclecars and other small motorcycles were 
produced at first, often manufactured by hand.

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In addition, there were also a number of larger companies (Saurer, 
established 1906, Perl, Austro-Fiat, established 1907, Fross-Buessing, 
established 1908) which produced lorries and subcompact vehicles. The 
Oesterreichische Daimler-Motoren AG (merged with 1928) and the 
Steyr-Werke works (merged with Austro-Daimler-Puchwerke AG to become 
Steyr-Daimler-Puch AG in 1934) manufactured lorries and buses. The 
Steyr XII, developed by Porsche, was considered one of the best 
mountain-road vehicles of the time and was exported in great numbers. 
The Steyr 50 ("Steyr-Baby") was the predecessor of the German 
Volkswagen. Several companies manufactured motorcycles; Puch 
motorcycles (esp. the legendary Puch 250) enjoyed particular success.

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In World War II, Austria's well-equipped car makers were used for 
arms purposes and suffered a great deal of sometimes irreversible 
damage.

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Some companies were confiscated after World War II and remained 
in the hands of Soviet occupation forces ( USIA) until 1955; 
particularly lorries, tractors and other utility vehicles were 
produced according to demand. In some cases, companies attempted to 
produce subcompact cars or entered into assembly co-operation 
agreements with companies abroad (e.g. Steyr-Puch 500). The 
promising prospect of sports vehicle production, begun by Porsche in 
Gmuend (Carinthia), did not prove viable.

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In the face of increased networking in world trade, the Austrian 
automotive industry was unable to hold its own against large foreign 
competitors and thus stopped domestic motor-car production (with a few 
exceptions). However Austria was able to maintain its international 
position in the production of cross-country vehicles (Haflinger, 
Pinzgauer, Puch G) for several years to come. A number of foreign 
manufacturers also located to Austria ( BMW Motoren GmbH in Steyr,  
Opel Austria GmbH in Aspern/Vienna). The  Eurostar Automobilwerk 
Ges.m.b.H. und Co. KG joint venture was established in Graz and 
was wholly taken over by DaimlerChrysler in 1999; Austrian companies 
also began supplying automobile parts to manufacturers in Germany and 
other countries. Austria still produces lorries ( Steyr Nutzfahrzeuge 
AG,  Oesterrreichische Automobilfabrik OeAF-Graef & Stift AG) and 
supplies and produces 4-wheel-drive off-road vehicles ( 
Steyr-Daimler-Puch Fahrzeugetechnik AG und CO KG - since 1998 part of 
Magna Holding AG), mostly for non-Austrian contractors. Among the most 
important subcontracting firms are branches of  Magna Holding AG, 
which have been established since 1987; the firm  AVL LIST GmbH, set 
up by Hans  List has enjoyed worldwide success in Motorenentwicklung. 
Exports of supply parts virtually covers the value of imports.

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After 1945, the demand for two-wheeled motor vehicles rose sharply 
(motorscooters, mopeds, etc.), which was followed by the automobile 
boom after 1960. Along with Puch, Lohner and KTM were able to survive; 
however, only KTM ( KTM Sportmotorcycle AG) survived long enough to 
see the renewed motorcycle boom (from 1990 onwards).

!Further reading
H. Seper, H. Krackowizer, A. Brusatti, 
Oesterreichische Kraftfahrzeuge vom Anbeginn bis heute, 1982.


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