In the 1930s, Mercedes-Benz developed two innovative compact cars, unlike anything it had previously produced or would produce again. Debuting in 1934, the 130 evolved from concepts explored during Ferdinand Porsche’s tenure at Daimler-Motoren-Gesellschaft in the 1920s. With a fully independent suspension, a simple backbone chassis, and a 1.3-liter, 26-horsepower engine mounted behind the rear axle, it represented a bold departure from conventional automotive design. However, the car was underpowered, handled poorly, and its styling hampered sales.

In 1935, Mercedes introduced its successor, the 170 H (H for heckmotor, or “rear engine” in German). This model featured improved engineering, a larger engine, and rounded styling that would later earn it the nickname “Benz Beetle.” Together, these advances delivered impressive performance for the era, including a top speed of around 70 mph and fuel economy of roughly 30 mpg. However, the 170 H struggled in the marketplace. The unconventional layout, high price, and departure from traditional Mercedes-Benz design limited its appeal, and only 1,507 examples were built before production ended in 1939.