The company was an outgrowth of the Verkehrsbahn-Studiengesellschaft (Transit Railway Study Group), which had already presented its first monorail designs and prototypes in the previous year.

[3] Both systems remain operational, with the Seattle Center Monorail still using the original Alweg trains which have traveled over one million miles.

In 1963, Alweg put forward a proposal to the Los Angeles County Board of Supervisors for a monorail system that would be designed, built, operated and maintained within Los Angeles County, California by Alweg.

Alweg promised to take all financial risk for the construction with the cost of the system to be recovered through fares collected.

The supervisors voted down the proposal, mostly due to political pressures from Standard Oil of California and General Motors, which were strong advocates for automobile dependency.