Auto Union Chairman, Klaus, Baron von Oertzen, wanted a show piece project to announce the new brand. At the 1933 Berlin Motor Show, German Chancellor Adolf Hitler announced two new programs
A state-sponsored motor racing programme: to develop a "high speed German automotive industry," the foundation of which would be an annual sum of 500,000 Reichsmarks to Mercedes-Benz
At fellow director's Adolf Rosenberger insistence, von Oertzen met with Dr. Ferdinand Porsche, who had done work for him before, and developed his own P-Wagen project racing car based on the new 750 kg (1,700 lb) formula.
German racing driver Hans Stuck Sr. had met Hitler before he became Chancellor, and not being able to gain a seat at Mercedes, accepted the invitation of Rosenberger to join him, von Oertzen, and Porsche in approaching the Chancellor. In a meeting in the Reich Chancellory, Hitler agreed with Porsche that for the glory of Germany, it would be better for two companies to develop the project, resulting in Hitler agreeing to pay ₤40,000 for the country's best racing car of 1934, as well as an annual stipend of 250,000 Reichsmarks (₤20,000)each for Mercedes and Auto Union. (In time, this would climb to ₤250,000.)This highly annoyed Mercedes, who had already developed their Mercedes-Benz W25, which nevertheless was gratified, its racing program having financial difficulties since 1931. It resulted in a heated exchange both on and off the racing track between the two companies until World War II.
Having garnered state funds, Auto Union bought Hochleistungs Motor GmbH and hence the P-Wagen Project for 75,000 Reichsmarks, relocating the company to Chemnitz.
Design
The Auto Union racing cars types A to D were built as Grand Prix racing cars from 1934 to 1939. They resembled the earlier Benz Tropfenwagen, also built in part by Rumpler engineers), The only Grand Prix racers to wear Auto Union's four-ringed logo, they were particularly dominant in 1936. From 1935 to 1937, Auto Union cars car won 25 races, driven by Ernst von Delius, Bernd Rosemeyer, Hans Stuck Sr., and Achille Varzi. Much has been written about the difficult handling characteristics of this car, but its tremendous power and acceleration were undeniable — a driver could induce wheelspin at over 100 mph (160 km/h).
the cars used supercharged piston engines; eventually producing almost 550 hp (410 kW; 560 PS), designed to provide optimum torque at low engine speeds. Rosemeyer would later drive one around the Nürburgring in a single gear, to prove the engine was flexible enough to do it. The fuel tank was located in the centre of the car, directly behind the driver (who would be placed well towards the front), so the car's front-rear weight distribution would remain unchanged as fuel was used — exactly the same location used in modern open-wheel racing cars, and for the same reason. The chassis tubes were initially used as water carriers from the radiator to the engine, but this was eventually abandoned after they often sprung small leaks.
