for the country's best racing car of 1934, as well as an annual stipend of (£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; nevertheless, Mercedes 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