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- #101
wiking85
Staff Sergeant
Until mid 1941 all armaments contracts were annual contracts on a 'cost plus financing' basis. It means that the company is immune from losses if for example a weapon takes extra time to develop and get into production. There is also no incentive to produce more, faster or more efficiently. This is just one example of the malaise that lay at the heart of the Nazi government's cosy relationship with industry in general.
It has been estimated that the German motor industry was still operating at less than 50% capacity for military vehicles in 1942. The huge Steyr Werkes in Austria was still unoccupied in 1943!
Hoarding of raw materials was an endemic problem within industry and the aircraft industry was one of the worse offenders. This was partly due to the quota system exercised by the RLM. Companies consistently over estimated their needs assuming they would get less than whatever they asked for and then stockpiled any excess against future shortage.
There is some evidence that raw materials intended for the armament and related industries were diverted into consumer goods production. In 1942 the production of consumer goods in Germany was running at a rate only 3% lower than before the war. Corruption was rife in the Nazi system.
There was also considerable wastage due to inefficient techniques (one report estimates that a staggering 700Kg of aluminium was 'wasted' in the production of one aero engine) and inappropriate uses. Messerschmitt was still using aluminium to manufacture pre-fabricated barracks for the Navy and ladders for vineyards in 1943.
Other 'technological gambles', even those which did enjoy some success were fraught with problems. In November 1943 2,000 partially completed V-1s were scrapped due to 'structural weaknesses'.
Cheers
Steve
Steyr was producing things for the war effort during WW2:
Steyr-Daimler-Puch - Wikipedia, the free encyclopedia
Steyr Daimler Puch â€" Wikipedia