Adam Opel AG - World War I and Its Aftermath

World War I and Its Aftermath

Germany entered World War I in August 1914, and Opel's production was converted to provide material for the armed forces. The company manufactured trucks for the war effort, producing in particular a three-ton truck. For the first time, many parts were standardized, allowing them to be taken from one truck and used to fix another. Because 2,500 Opel men—a large part of the factory's workforce—were conscripted into the army and sent off to war, women and prisoners-of-war were used to operate the plant. As the war progressed, Opel experienced extreme shortages of resources, including rubber, and by 1915 the factory was turning out trucks with iron wheels.

The war affected the Opel family in ways that extended beyond the business. The youngest of the Opel brothers died in battle. In 1917 the surviving brothers were made knights, and the following year, the family was given the right to add the noble prefix "von" to their names.

In the wake of Germany's defeat, the Opel factory was occupied by French troops in December 1918, who surveyed production closely, controlling the plant's output. The country's strained economic circumstances increased demand for cheap transportation, and Opel began to build and sell more bikes and motorcycles. In 1919 the company began to market a bike with an accessory motor, which attached to its side. Production of automobiles resumed that year, though at a slowed pace given the low demand.

In the early 1920s Germany suffered hyperinflation, which quickly consumed the capital of the middle class. Under these conditions, Opel's cheapest car in 1922 sold for DM 225,000, an astronomical sum out of the reach of almost all consumers. In 1923 Opel was compelled to print its own emergency money with which to pay its worker's salaries, and finally, in August, the plant was forced to close.

Facing this crisis, two of the Opel sons traveled to the United States to learn about modernized car manufacturing methods, particularly the assembly line technique perfected by Henry Ford. They returned convinced that this was the key to rapid car manufacturing in the future, instead of the piecework method currently practiced in Germany. A 45-meter-long assembly line was installed in the Opel factory, and in the spring of 1924, the first car rolled off this line. Popularly called the "Tree Frog" because of its standard green color, this sturdy two-seater featured a directly operated transmission.

Company Perspectives:

Since its inception in 1862, Opel has set out to make technology affordable and widely available to a large segment of society. This vision has remained constant from its roots as a sewing machine manufacturer, its subsequent expansion to bicycles and today remains at the heart of all automotive product development.

Opel has a strong brand profile which rests on these four cornerstones: Versatility and interior flexibility; Driving dynamics; Contemporary, distinctive design; Modern infotainment system.

Opel sold more than 100,000 of the Tree Frogs throughout the 1920s. From 1924 to 1928, the company steadily reduced the prices of its products until the cost of the company's cheapest car had sunk below DM 2,000 at the end of the decade. In addition to possessing 37 percent of the German market, Opel was the country's largest exporter. Also in 1928, the firm became a stock corporation (a German Aktiengesellschaft), Adam Opel AG.