Hungarian General Machine Factory

Magyar Általános Gépgyár Rt (MÁG)

Company type	Részvénytársaság (Limited company)
Industry	Automotive, Aircraft manufacturing
Predecessor	Podvinecz & Heisler (founded 1901)
Founded	July 27, 1912 (1912-07-27) in Budapest, Hungary
Fate	Ceased automobile production after World War II
Headquarters	Budapest , Hungary
Area served	Hungary
Key people	Dániel Podvinecz, Vilmos Heisler, Jenő Fejes, János Csonka, Jenő Böszörményi
Products	Automobiles, trucks, aircraft engines, airplanes

MÁG is an acronym for "Magyar Általános Gépgyár Rt" (Hungarian General Engine Works Company Limited). Established officially on July 27, 1912, according to the Budapest Court of Justice records, it was Hungary's leading vehicle manufacturer prior to World War II, headquartered in Budapest. The company's origins trace back to 1901 with Podvinecz & Heisler, founded by two young entrepreneurs, 25-year-old Dániel Podvinecz and 24-year-old Vilmos Heisler. Initially, they assembled Leesdorfer cars from Austria, which were themselves licensed versions of French Amédée Bollée automobiles.

Their subsequent model, the Phönix, licensed from the German Cudell, achieved greater success. In 1912, the firm underwent restructuring, and by 1913, its automobile manufacturing branch was formally named Magyar Általános Gépgyár Rt. Production expanded significantly due to contracts with the Post Office, military, and other institutions. This growth allowed MÁG to surpass contemporaries like Röck, Rába, and MARTA, supported by government initiatives favoring domestic industry. The company introduced various models designed by notable engineers such as János Csonka and Jenő (Eugene) Fejes.

Beginnings

Throughout its history, the Hungarian General Engineering Works (MÁG) became arguably Hungary’s most renowned automobile manufacturer. In the early stages, it was likely Vilmos Heisler who convinced his partner to venture into producing automobiles—a novel concept in Hungary at the time.

On 15 September 1884, Dániel Podvinecz and Vilmos Heisler launched their enterprise named "Mechanical Engineering and Mechanical Agents" located at Váczi körút 16, third floor, number 70, in Budapest’s V district. Originating from rural backgrounds, they identified a lack of machinery and spare parts in agriculture, particularly impacting small farms. Initially focusing on grinders and threshing machine components, they soon expanded to larger machinery. Their clientele included millers who purchased drive belts, gears, small axles, and precision-machined parts. During the 1890s, Hungarian government policies promoting industrial development extended benefits to small-scale industries and cooperatives. Consequently, on 15 May 1892, they secured industrial certificates for iron and steel manufacturing (No. 12079) and machine repair (No. 12080), relocating their operations to Botond Street 7 in Budapest’s VI district. Alongside trading activities, manufacturing and selling their own parts grew increasingly profitable. On 13 August 1895, following their application to install self-produced equipment in mills directly, the Trade and Exchange Court officially registered them as Budapest Mill Construction and Machine Works.

Government-driven industrial advances heightened demand for internal combustion engines—a sector that attracted Podvinecz and Heisler’s attention. However, their Botond Street facility was insufficiently sized for expansion. Consequently, they acquired a larger site on what was then the outskirts of Váci út: a 3,810 square meter property divided equally between two plots registered on 26 October 1900. By 14 February 1901, the VI district magistrate confirmed that "Podvinecz and Heisler factory owners were engaged in manufacturing mill construction goods and machinery at their factory located at 141 Váczi Street." From 21 March onward, their company operated under the name Budapest Mill Construction and Machine Works, Podvinecz and Heisler. Their extensive product range enabled them to navigate economically challenging periods; however, production remained artisanal without mass manufacturing capabilities.

In 1904, the company acquired all equipment from the Leesfeld car factory near Baden and transferred it to their Budapest facility. Shortly thereafter, they also relocated remaining stock from the burned-down German Cudell car factory near Leesdorfer to their Váci út plant.

At the second Budapest International Motor Show in spring 1905, they showcased the Phönix—a four-seater automobile featuring a reclining engine layout, electric ignition system, and friction switch—based on a Cudell license. This model earned a gold medal at the Bucharest International Fair. Early Podvinecz-Heisler vehicles retained the Phönix designation inherited from Cudell. The smallest variant was a two-cylinder engine producing 10 hp; larger four-cylinder engines were offered in multiple capacities (16/20 hp, 20/24 hp, and 35/40 hp). Despite exhibition accolades, public reception was limited; by late 1907 only eight Phönix cars were registered on Hungarian roads.

When Cudell parts were depleted in 1906, the firm purchased inventory from the Alba car factory in Trieste—established in 1906 but liquidated in 1908 within the Austro-Hungarian Monarchy. The smaller model with horsepower ratings between 18-24 hp served as a passenger vehicle; meanwhile, a larger bus and truck model featuring Aster engines produced between 35-40 hp was also marketed under the Phönix name.

Following Dániel Podvinecz’s death in 1908, Vilmos Heisler managed operations alone for some time before partnering with Géza Jalsoviczky—the retired director of Budapest State Higher Industrial School—from 1911 onward.

In line with Austrian initiatives in 1911, Hungary’s Ministry of War introduced a "subsidy truck" program offering partial reimbursement to buyers of trucks meeting military specifications. In exchange for subsidies, owners had to make vehicles available for military exercises; however, after World War I began these vehicles were often requisitioned outright. To capitalize on this opportunity for growth, Heisler agreed to program conditions requiring that automobile production be conducted in separate workshops operational by November 1912 with capacity for employing eighty workers. Additionally, a distinct trademark was mandated exclusively for use within Hungary—leading to creation of the MÁG brand name.

On July 4th, 1912, the company officially adopted the name Magyar Általános Gépgyár Részvénytársaság. While continuing traditional production of milling machines and engines at their existing location (141 Váci út), a newly outfitted facility dedicated solely to automobile manufacturing commenced operations.

Automobile industry

To initiate automobile manufacturing, they recruited Jenő Fejes from the MARTA firm in Arad, assigning him leadership of the design office.

By 1913, their first self-designed passenger vehicle was completed, featuring a 25-horsepower, three-litre engine with a 90/120 mm bore and stroke. Key specifications included: - crankshaft supported by three bearings - Bosch high-voltage ignition magneto - single-disc dry clutch - semi-elliptic spring suspension on both front and rear axles - options for solid or wire-spoked wheels - chassis length measuring 4085 mm - wheelbase spanning 3000 mm.

Approximately fifty units of this well-received model were produced, limited to the chassis as bodywork was crafted by external coachbuilders. Besides passenger vehicles, two-ton trucks equipped with proprietary engines were also manufactured to fulfill subsidy criteria.

Just before the outbreak of World War I, production commenced on a series of 50 mail collection vans commissioned by the postal service, based on designs still being finalized by János Csonka. After hostilities began, automobile manufacturing was halted. The already produced engines and parts were repurposed into electric generators and other portable or wheeled devices at the army's request.

Aircraft industry

File:MAG Werbung 1918 Poster Motor Braunbeck.jpg

Advertisement for MÁG’s aircraft and aeroengine factory

The onset of World War I opened new avenues for the company as it manufactured aircraft engines under license from Austro-Daimler, along with complete airplanes. Until 1915, MÁG continued car production but then shifted focus to aircraft engine and airplane manufacturing to support national war efforts. To facilitate this, a large new aircraft factory was established at Mátyásföld.

Aircraft Engines

Serial Number	Horsepower
16501	150 HP
17801	160 HP
18601	180 HP
19501	200 HP
24001	225 HP

Interwar period

By 1920, the company had fully vacated its former premises on Váci út and relocated operations to Mátyásföld.

In 1922, it acquired complete ownership of the Hungarian Fiat-művek joint-stock company.

Following World War I, under the ownership of Camillo Castiglioni, proprietor of Austro-Daimler, car production resumed since aircraft manufacturing was prohibited by the peace treaty. Utilizing leftover chassis from the pre-war postal carriage equipped with 60/100 mm bore/stroke engines producing 10 hp, they introduced an updated four-seater single-door model alongside spare parts production. However, post-war economic conditions—marked by low demand and fuel shortages—limited output; a 1925 report noted only 150 vehicles were assembled between mid-1923 and mid-1924. This constrained market presence made sustaining operations difficult, especially as MÁG cars were priced disproportionately high—$850 in the US compared to $1,050 domestically for a touring model.

In response to these challenges, MÁG began developing a taxi-oriented model in 1923. Jenő Böszörményi served as technical director from 1924 to 1931 and oversaw the launch of the Magomobil and Magosix into mass production. Starting in 1925, production of both the Magomobil and Magotax—designed specifically for taxi use—commenced. These straightforward four-cylinder touring cars became a staple for taxi drivers over decades; post-World War II Budapest’s taxi fleet initially comprised Magotaxes. The Hungarian automobile market began recovering during 1925-1926; however, the Magomobil struggled commercially—only 148 out of 2,602 cars sold in Hungary in 1927 were MÁG models—resulting in persistent financial losses. Meanwhile, the six-cylinder Magosix was produced at Mátyásföld using an American design and partially American components.

The economic downturn triggered by the 1929 crisis led Credit Bank to initiate MÁG’s liquidation. Stock sales were transferred to Méray Motorcycle Works, owned by Hungarian General Credit Bank. During this process, several remaining Magosix chassis were completed at Méray.

On 10 January 1933, all MÁG operations ceased with a resolution to dispose of production assets, equipment, and movable goods.

Finally, on 18 April 1941, following its closing general meeting, Hungarian Machine Works Limited Company was formally dissolved.

Resumption in the automobile sector

Following the conclusion of the war, new vehicle models emerged, such as the Magomobil introduced in 1924. By the middle of the 1920s, it became clear that MÁG could not maintain a competitive edge within Hungary’s automotive market. The Hungarian General Credit Bank, which financed and owned the company, sought potential buyers. Meanwhile, another model called the Magosix was launched, featuring a 6-cylinder engine. This vehicle incorporated numerous American components in an effort to rival the American cars available locally; however, this strategy failed to yield success. The economic downturn triggered by the 1929 financial crisis ultimately forced the bank to cease operations. Throughout its existence, MÁG had produced approximately 2,000 passenger vehicles, 150 trucks and buses, along with around 1,000 automobile engines.

• Magomobil phoenix car -1906
  Magomobil phoenix car -1906
• Magomobil phoenix Bus
  Magomobil phoenix Bus
• Magomobil phönix auto -1910
  Magomobil phönix auto -1910
• Magomobil Phoenix advertisement in 1911
  Magomobil Phoenix advertisement in 1911
• 45HP Mag car under construction in 1912
  45HP Mag car under construction in 1912
• Mág Bus in Budapest in 1913
  Mág Bus in Budapest in 1913
• A Magomobil truck in 1914
  A Magomobil truck in 1914
• Magosix sport-touring car model, 1927
  Magosix sport-touring car model, 1927

Budapest, Váci út

The milling equipment production began in 1892 at 7 Botond Street within District VI (which was reassigned to District XIII from 1938). Shortly thereafter, this facility proved insufficiently spacious, prompting a search for a larger site to accommodate expansion. Around the turn of the century, operations relocated to what was then the outskirts along Váci út. At 141 Váci út, they acquired a plot measuring 3,810 square meters, split into two equal parts. Here, production continued for millinery goods and machinery while adding petrol engines to their portfolio. By 1904, their product range expanded to include automobiles. In 1910, a privately constructed locomotive powered by a self-produced 20-horsepower petrol engine was used for hauling goods within the yard. The machine workshop contained roughly one hundred machine tools — including large cylinder lathes, various other lathes, grinding machines, milling machines, and drilling equipment — along with an assembly area and an experimental station positioned behind it. Adjacent to this shop stood a factory-built "compound condensation steam engine" that supplied power for the entire facility. A separate carpentry workshop housed woodworking machinery such as milling machines, scrapers, planers, brushers, rollers, flat screens, and crane cleaning devices. Additionally, distinct workshops were dedicated to assembling automobiles and high-speed four-cylinder petrol engines rated at 60 horsepower; these engines were supplied to a machinery factory located in the lowlands for use in soil cultivation equipment. The one-and-a-half-acre plant also included storage areas as well as upholstery, polishing and painting sections alongside a blacksmith’s shop — all of which contributed to an already crowded site.

In 1917, manufacturing of engines, automobiles, and aircraft was transferred to Mátyásföld. To maintain production of steam engines and milling equipment at the outer Váci út location, a limited partnership was established involving Sándor Heisler as a shareholder and with Hungarian General Engineering Works Ltd. as an external investor.

Cinkota, Mátyásföld

In 1914, the Ministry of War tasked the factory with manufacturing aircraft engines. By late 1916, it had become the second-largest industrial employer within the Monarchy. In 1915, the Skoda Group joined the joint-stock company. Consequently, in January 1916, the firm acquired a 142,000 square plot known as Beniczky, situated between the forest belt and Crossroads road on Cinkota's outskirts. That same year saw the construction of an aircraft factory, followed by a significantly larger automobile plant in 1917. The total investment amounted to 5 million Austro-Hungarian crowns, divided into 1.6 million crowns for buildings and 2.4 million crowns for machinery. The municipality of Cinkota granted a 15-year tax exemption to support the company. The capital expansion of M. Á. G. also involved the Schwerin-based Fokker aircraft firm, which exchanged its validated patents and models for shares of equivalent value.

Although Mátyásföld remained administratively a part of Cinkota until 1950, it is still commonly identified as Mátyásföld (referring to both the factory and airport), located along the southern boundary of the Old Matyasland housing area. The Hungarian General Machine Factory's complex covered 10 hectares and featured a water tower reaching 39 meters and a factory chimney standing 30 meters tall.

The factory's railway siding at Mátyásföld, branching off from the Cinkotai HÉV line, was finalized in April 1916. Subsequent construction contracts were awarded through tenders during that summer. Earthworks were assigned to Lord and his partner; master builder tasks went to Dávid R. and his son; reinforced concrete work was handled by István Pacher; ironwork was completed by Antal Oetl; carpentry was undertaken by Wellisch Náthán’s successor; slate roofing was supplied by Újlak Brickworks; skylight installation was managed by Haas and Somogyi; heating systems were installed by B. and E. Körbing; plumbing and sewage infrastructure were constructed by Salamon Spitzer.

In October 1917, Archduke Joseph Ferdinand Habsburg—Inspector General of the Imperial and Royal Air Forces—visited the facility, which then consisted of an engine manufacturing plant, an aircraft factory, and an airport. After World War I, the site transitioned entirely to automobile production.