Restructuring of Austrian DMG

In Paris, two companies are established in which Emil Jellinek and DMG each hold a stake. Société des Automobiles Commerciales, around 55 % of which is owned by DMG, acquires the Wiener Neustadt plant site and manufacturing licences for France, Austria-Hungary and the Balkans from DMG. Jellinek, meanwhile, is the driving force behind the creation of Société Mercédès Électrique, in which DMG takes an 8.5 % holding. The new company is set up to start production of electric-powered vehicles based on the Lohner-Porsche system. Following the sale of the Wiener Neustadt factory, Österreichische Daimler-Motoren-Gesellschaft is converted into a limited-liability company. Ferdinand Porsche takes over the reins as chief engineer, having developed the hub drive system seven years earlier at Jacob Lohner & Co.