The next test vehicle after the motor carriage was a boat. Patent specification DRP 39367 refers to a "fitting designed to operate the propeller shaft of a ship using a gas or petroleum drive machine". In June 1887, Daimler moved to new production facilities in Seelberg (Cannstatt).
Gottlieb Daimler employed 23 carefully selected workers. A workforce of this size was, of course, far too large for a purely testing operation and costs exhausted a large slice of Daimler's personal fortune – even though the successful boat engine business generated good profits.
The tight economic situation forced Daimler to seek partners. This resulted in the arrival of Max Duttenhofer, Managing Director of the Köln-Rottweil powder factory, and a friend of his, Wilhelm Lorenz. On 28 November 1890, a public limited company was founded under the name Daimler-Motoren-Gesellschaft. The company's aim was to continue the activities carried out in Seelberg. Under the terms of the consortium agreement, Maybach was to be appointed Technical Director of Daimler-Motoren-Gesellschaft. However, the terms of contract were unacceptable to an expert of Maybach's status. This resulted in Maybach leaving the company on 11 February 1891. Product-related issues were at the centre of the disagreement that developed between Duttenhofer and Daimler. When it became clear that the impasse could not be resolved, Daimler resorted to more cunning methods. The development side of the business was to continue independently of Daimler-Motoren-Gesellschaft and with the participation of Maybach. In this way Daimler killed two birds with one stone. He would have been forced to pay Maybach a considerable sum had his contract been terminated. For the second time, Maybach's home had to be put forward as a design office. In the autumn of 1892, Maybach rented the garden hall of what was formerly the Hotel Hermann on Daimler's behalf.
The patents for the designs produced here were registered in Maybach's name as a cover. Daimler merely looked after the financial side of the venture, Maybach enjoying a free reign as far as design was concerned. Among Maybach's most significant inventions during this period was the spray-nozzle carburettor.
DMG found economic success hard to come by following Maybach's departure. It is significant that Daimler and Maybach's inventions were first used commercially abroad – and in France in particular. The automobile pioneers Panhard and Levassor acquired the license rights in 1889 and, from 1890, installed only Maybach-developed two-cylinder V-type engines in their vehicles.