Timeline
Nikolaus August Otto as a young man was a traveling salesman for a grocery concern. In his travels he encountered the internal combustion engine built in Paris by Belgian expatriate Jean Joseph Etienne Lenoir. In 1860 Lenoir succeeded in creating a double-acting engine which ran on illuminating gas at 4% efficiency. The 18 liter Lenoir Engine was able to produce only 2 horsepower.
In testing a replica of the Lenoir engine in 1861 Otto became aware of the effects of compression on the fuel charge. In 1862 Otto attempted to produce an engine to improve on the poor efficiency and reliability of the Lenoir engine. He tried to create an engine which would compress the fuel mixture prior to ignition, but failed as that engine would run no more than a few minutes prior to its destruction. Many engineers were also trying to solve the problem with no success.
In 1864 Otto and Eugen Langen founded the first internal combustion engine production company NA Otto and Cie (NA Otto and Company). Otto and Cie succeeded in creating a successful atmospheric engine that same year.
The factory ran out of space and was moved to the town of Deutz, Germany in 1869 where the company was renamed to Gasmotoren-Fabrik Deutz (The Gas Engine Manufacturing Company Deutz).
Gottlieb Daimler was technical director and Wilhelm Maybach was the head of engine design. Daimler was a gunsmith who had also worked on the Lenoir engine previously.
By 1876 Otto and Langen succeeded in creating the first internal combustion engine that compressed the fuel mixture prior to combustion for far higher efficiency than any engine created to this time.
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