I think I have this dispute between RLM and Daimler-Benz figured out.
Daimler-Benz in the Third Reich - Neil Gregor - Google Books
October 1935. RLM wants to build a relatively large aircraft engine factory at Genshagen to produce the new DB601 V12.
.....Seperate company to be formed. It would be under Daimler-Benz control.
.....RLM to provide start up capital of 5 to 10 million RM.
.....Daimler-Benz to finance the remainder with a loan of 40 to 45 million RM. RLM would guarantee the loan.
Daimler-Benz refused this contract offer. They wanted RLM to finance the entire engine plant, which Daimler-Benz would operate and profit from.
Daimler-Benz had RLM over a barrel. The German fighter competition was in full swing and both finalists (Me-109 and He-112) wanted the DB601 engine.
RLM relented but the new DB601 engine plant was scaled back by over 50%. 20 million RM total capital. All but 750,000 RM provided by RLM.
RLM did not fund expansion of the Genshagen DB601 engine plant until 1940 and only because that engine was desperately needed by the growing Me-109 fighter program. RLM also cancelled funding for the DB603 engine program during 1937 to 1940.
Other aircraft proposals powered by Daimler-Benz engines (Fw-187, He-100, Fw-190 and Do-217) were turned down by RLM. Fw-190 and Do-217 aircraft proposals were ressurected after they considered other engine choices.
If not for bone headed decisions by Daimler-Benz management and RLM during October 1935...
- There would be twice as many DB601 engines available by 1940.
- The DB603A engine would probably enter mass production during 1941. Continued development of more powerful versions would receive adequate funding.
- The Fw-187 and He-100 would enter service during 1940 powered by DB601 engines.
- The Fw-191C would enter service during 1941 powered by DB603 engine.
- There would be no BMW801 radial engine. And nobody would miss it as the DB603 engine was superior in most respects.