Pre-War Production
The volume of production in the industry before the war and even in 1939 was still comparatively small. Prior to 1938 only the Mark I and II were produced. Small scale production of the Mark III began in 1938 and of the Mark IV in 1939. Tank output in the last four months of 1939 averaged only 62 units monthly, of which almost 50 were Mark IIIs and the remainder Mark IIs and IVs. The numerical total produced may have been somewhat higher in the years before 1939 - when a large number of Mark Is were being produced - but it appears that German tank production both in the prewar period and in 1939-40 was considerably overestimated by Allied intelligence. German army records indicate that total stocks as of 1 September 1939, including equipment in the hands of front-line troops, amounted to more than 3000 tanks, but of these almost 1,500 Mark Is, production of which was discontinued at about that time.
The basic strategic conception of a short war requiring only limited mobilization of resources governed panzer production in Germany during the first two years of the war. The succession of quick and comparitively easy victories during this period did nothing to disturb this conception. Production rose continuously during the period, exceeding 100 per month in May 1940 when the attack on France was launched, 200 per month at the end of 1940, and 300 per month just prior to the invasion of Russia. This rise was apparently the result of relatively limited expansion of plant facilities during 1939 and 1940, and of the increase in the numbers of workers engaged in panzer production. At the beginning of 1940 a start was made on the output of assault guns mounted on the Mark III and IV chassis.
Throughout 1940 and 1941 the Mark III tank was the principal type built, accounting for approximately half the total number produced. The remainder were the Mark II and IV tank, the 38 t tanks, and assault guns. A total of approximately 1,600 panzer were produced in 1940 and 3,800 in 1941. The level in production which existed throughout 1941 as thus almost insignificant by comparison with the levels subsequently achieved under the pressure of the changed strategic and tactical conditions of the later years of the war.
Battle losses in each of the campaigns prior to the attack on Russia were exceedingly small, and stocks of panzer vehicles mounted almost continously until June 1941. Only 250 tanks were lost during the Polish campaign, so that by 1 January 1940 stocks were again at the level of 1 September 1939. Wastage during the French campaign was only 300 tanks - little more than the number produced in the period of fighting. Losses in Yugoslavia and Greece were approximately 100 tanks. On 1 June 1941 stocks exclusive of the Mark I tank, which was no longer used in combat, amounted until almost 4,500 panzer vehicles, including about 2,000 medium tanks and 400 assault guns mounted on the medium chassis. In the light of experience in the previous campaigns these stocks were expected to be of short duration.
During the stages of the war through 1942, the tank industry continued to function much the same as it did prewar. Production exceeded losses at all times with the exception of one month, July 1941, when there was an excess of losses of approximately 5,000 tons equalling about 250 tank, but this deficit was made up in the course of the next two months. Table 2, below, gives production through 1942. Production was increased in 1941 by the conversion of additional facilities in the original six plants to tank manufacture. This conversion consisted primarily in the discontinuance of non-essential peacetime production. However, during this period plans were activated for a tremendous potential increase in production.
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