In 1927 he briefly worked as a draftsman for Evinrude Motors before being fired for "...frequent, disquieting and brazenly insubordinate arguments concerning design and product development...".

He purchased an outboard motor manufacturing company in Cedarburg, Wisconsin in 1939, intending to make magnetic separators for the area's dairy industry.

During World War II the Kiekhaefer corporation manufactured small two-cylinder drone engines that were used for target aircraft.

Two Mark 75 motors set an endurance record by running for 34 days, 11 hours, 47 minutes, and 5.4 seconds nonstop and over 25,000 miles.

After Carl's death in 1983, his son Fred secured control of the company and changed its focus from the engine business to propulsion hardware.

Tim Flock was the number one driver, entering 38 events, with 18 wins, 18 poles, and 32 Top-10 finishes on his way to the NASCAR championship.

Kiekhaefer had nine drivers race for him in the 56 event season, taking first, second, third, and ninth in the final series points.

Speedy Thompson also drove for the team, entering 39 events, with 8 wins, 7 poles, and 28 top-10 finishes on his way to third place in the points.

NASCAR changed the rules to Kiekhaefer's disadvantage and he did not want a backlash to affect Mercury sales after fans booed the team.