
Germany was prohibited from building tanks during the Weimar Republic. After 1933, however the Versailles restrictions were ignored, and Germany was allowed the freedom to construct and export tanks. Many futuristic and innovative tank designs were developed as a result. These designs are a glimpse at the development of German armor.
During the interwar years, German companies worked closely with Bofors on a variety of projects. One of these was the creation of a new light-tank. The company was tasked with designing a new tank for the German Army in 1930. Otto Merker was the company's head of tank-development. His first task was to design and build a light tank. He submitted a patent in 1937 for this design. He also designed fixtures to fit other armored vehicles.

The company also submitted a design for an obsolete light tank. This design featured a shallow trench that protected against enemy fire. This design was never built. The company was able to modify the design to incorporate an offset engine, which allowed for two men to operate the tank. A curved shield protected the machine gunner. The design included a separate machine gun for the hull, but it was limited in its ability to provide a narrow arc of fire. The remaining armor would be made from flat armor plates.
Despite its shortcomings, the design featured many features that are common to modern one-man tank designs. The hatch or cupola of the design provided increased visibility and better observations. The cupola could be raised and lowered, and provided protection from enemy fire. It also provided an escape hatch.
The design was similar as other one-man tank designs, with a man sitting in the middle of a tank and firing a weapon forward. The crewman would look out of the cupola to look for targets. The design was not circular but three vision slits were drilled in each side of the cupola. Although it made it difficult to see outside for crewmen, it increased the protection.
Also, the front was sloping. The hull's front was angled. The upper half was made out of angular flat panels of metal. The hull was approximately 10 to 12 millimeters thick. The design had sharply sloping rooflines that would encourage the deflection of enemy fire. The hull was fabricated from pressed steel, and the rest of the armor was made from flat armor plates.

The design's low ground clearance was one of its major flaws. This made it very difficult for one person to control the tank. The design also had a very thin armor plating. It was difficult to see the vehicle. This design was very unpopular with the Nazi Party. It was eventually banned in 1941. The German Patent DE687038(C) 'Halbgleiskettenfahrzeug' was issued on 20th January 1940.