Although the Zschopau marque established its reputation with the general public as the purveyor of reliable, if somewhat unexciting, commuter machines, the East German concern was in the forefront of high-performance two-stroke development in the post-war years. Under the direction of Walter Kaaden, the racing team achieved some notable triumphs against the might of Japanese opposition in the 1960s, and although its Grand Prix effort eventually faded, the firm produced many highly successful ISDT machines in the 1960s and 1970s. What would become Motorradwerk Zschopau (Zschopau Motorcycle Works) was founded in the old DKW factory in Saxony after WW2, although its first machines were marketed under the IFA brand name. That first machine was based on the pre-war DKW 125, and derivatives were soon being raced in the East German Championship. The pace of development quickened following Kaaden's arrival in 1952, for it was he who redesigned the engine to accept a rotary disc inlet valve and resonant exhaust system. Another important recruit was rider/engineer Ernst Degner, who was one of the first to race MZs outside East Germany. A string of promising results by Degner and others in the late 1950s attracted the attention of the West's top riders, and Rhodesian Gary Hocking was recruited for 1959. Hocking achieved MZ's first classic victories that year, in the 250cc races at the Swedish and Ulster Grands Prix, but at the season's end was lured away by MV Agusta. By this time the MZ was the equal of anything in the 125cc and 250cc classes (in 1961 the 125 produced 25bhp, the equivalent of 200bhp per litre) but a lack of sufficient funds to retain top riders and mount a sustained attack of the World Championships would continue to handicap the East German firm. Nevertheless, in 1961 it looked certain that Degner would be 125cc World Champion; he led Honda-mounted Tom Phillis by two points going into the final round but then defected to the West, handing the title to the Australian. Despite some spirited rides by other top Western riders, among them Alan Shepherd, Peter Williams and Derek Woodman, plus East German Heinz Rosner, MZ never got that close to a World Championship ever again.