(My Answer on Quora)
They had a strong industrial base to begin with that goes back well into the 19th century. Both the Diesel and the regular Internal Combustion engines were either developed or improved on by pre-war German engineers. Their academies and engineering schools were some of the best in the world and their production ingenuity had been supercharged by the necessity of war and the need for innovation (especially when skirting around the Allied Sea blockades).
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