Karl Benz invents the first petrol-powered vehicle

Benz's lifelong hobby brought him to a bicycle repair shop in Mannheim owned by Max Rose and Friedrich Wilhelm Eßlinger. In 1883, the three founded a new company producing industrial machines: Benz & Companie Rheinische Gasmotoren-Fabrik, usually referred to as Benz & Cie. Quickly growing to twenty-five employees, it soon began to produce static gas engines as well.

The success of the company gave Benz the opportunity to indulge in his old passion of designing a horseless carriage. Based on his experience with, and fondness for, bicycles, he used similar technology when he created an automobile. It featured wire wheels (unlike carriages' wooden ones) with a four-stroke engine of his own design between the rear wheels, with a very advanced coil ignition and evaporative cooling rather than a radiator. Power was transmitted by means of two roller chains to the rear axle. Karl Benz finished his creation in 1885 and named it "Benz Patent Motorwagen".

It was the first automobile entirely designed as such to generate its own power, not simply a motorized stage coach or horse carriage, which is why Karl Benz was granted his patent and is regarded as its inventor.