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The History of AGA
AGA formed a manufacturing company in Germany, Autogen Gasaccumulator AG, in 1914. A new factory was built in Berlin-Lichtenberg for acetylene and welding equipment. After World War I, AGA started manufacturing the first everyday car for the general public.
People realized that large-scale production along the lines of the American Ford was essential if the car was to be launched at a low price. Through its focus on "the people's car" AGA became an significant player in the German and Swedish automobile industry.
The German subsidiary started car production in 1919 but Gustaf Dalén sanctioned rapid investment. Since 1915 he had been a partner in Enoch Thulin's aircraft factory in Landskrona. After the war this factory was also forced to switch to alternative production. Within a month the president of the Thulin factory had signed an agreement with German AGA and production of the Thulin car started in Landskrona in 1920. However, having manufactured only 300 cars, the company went bankrupt. In 1921 Germany suffered an economic collapse. AGA's car factory survived the crisis in spite of strikes and a weak market and its monthly output was a maximum of 450 cars.
But the competition became even tougher. In 1924 the AGA plant was incorporated with the car empire left by magnate Hugo Stinnes. Shortly afterwards the entire empire suffered financial difficulties and payments were suspended in 1925. In 1929, when more than 8,000 AGA cars had rolled out of the factory, the end had come.
