In 1871 Karl Benz joined forces with "mechanician" August Ritter to found his first company in Mannheim. When Ritter emerged as an unreliable partner, Karl Benz paid him off using the dowry of his wife, Bertha Ringer, and ran the company alone.
In 1872 Karl Benz married Bertha Ringer. His new wife, Bertha Benz, was to play a key role in the subsequent success of his new company. She was the first person to drive an automobile over a long distance and is therefore the first female motorist in history. Karl and Bertha Benz had five children.
Business was not good for Karl Benz in the early days. In his "Iron Foundry and Mechanical Workshop" (later renamed "Factory for Sheet-Metal Working Machines"), things got so bad that tools were impounded. In search of a new source of revenue, Karl Benz focused his attention on two-stroke engines. Following a two-year development period, the first engine operated satisfactorily in 1879. Since the patent for a four-stroke engine had already been issued to Deutz Gasmotorenfabrik in 1877, Benz's engine was based on a two-stroke cycle. In developing his two-stroke engine, Benz also obtained a number of fundamental patents, e.g. engine speed control. He employed his new battery ignition system to start his vehicles.
Aided by new financial backers and partners and the support of banks, Karl and Bertha Benz converted the company into a public limited company, renaming it "Gasmotorenfabrik Mannheim". Karl Benz's share in the company amounted to a mere 5 percent. When his partners attempted to exert influence on his designs, Benz left the fledgling company in 1883.