ABSTRACT
In 1902 the German firm of Daimler acquired a wholly-owned subsidiary in Austria and, unknowingly, became the first multinational enterprise (MNE) in the motor industry. Paul Daimler, son of the founder of the parent company, was appointed technical director of the Austrian Daimler Company, itself established in Wiener Neustadt in 1899 to manufacture motors and parts, particularly Daimlers. However, until 1902 its operations had been restricted to assembly as far as Daimlers were concerned. Paul Daimler brought a number of technical personnel with him from Germany and arranged for workers from the Austrian plant to be trained in Cannstadt, thus becoming responsible for the first transfer of technology within an automotive MNE. He designed and produced a number of Daimler vehicles in Wiener Neustadt, but in 1906 Ferdinand Porsche became chief engineer and subsequently links were established between the Austrian company and two French firms which reduced the Daimler share in the business to 25 per cent. In 1913 that share was sold to Karl von Skoda thus completely severing the link between the German and Austrian companies. 2
