In the 1920 s, audi, HuoXi DKW and striders all have their car company to deal with different segments of the market,their competition are peaceful. But because of the assembly line and the use of modern machinery equipment ,so that the production capacity rapidly rises, and thus it is required the companies to expand markets,while increasing sales volume requires a lot cost,

what’s more, on the other hand,the foreign car makers make each car company suffer great losses.At last,the German car industry find it difficult to rely on their own solutions to these financial problems,since then, Saxony state bank in order to keep interests of the auto industry,they founded the automobile federation with four companies.