In World War I, Gotha was the manufacturer of a highly successful series of bombers based on a 1914 design by Oskar Ursinus and developed by Hans Burkhard.

In 1921 the company purchased Automobilwerk Eisenach, thereby entering automobile production and, with the Dixi 3/15 DA-1 playing an important part in expanding the German auto-market to buyers who hitherto would have ridden motorcycles, if at all.

In 1924 the Cyklon Maschinenfabrik, a manufacturer that had concentrated on motor-bikes and cycle cars came to be merged into the larger Gothaer Waggonfabrik business, through a rather indirect route of company purchases and sales.

On 22 February 1944, a squadron of American bombers was sent from Britain to bomb the factory, but due to bad weather, the mission was cancelled before they reached Gotha.

On 24 February 1944, 239 American B-24s are dispatched to the primary target at Gotha, Germany (169 bomb Gotha); the lead bombardier from 2AD suffered from anoxia due to a faulty oxygen mask and mistook Eisenach as the primary target, 43 other B-24s released on his mistake (44 bomb Eisenach); they claim 50-10-20 Luftwaffe aircraft; 34 B-24s are lost and 29 are damaged; casualties are: 3 KIA, 6 WIA and 324 MIA.

[3] Following the war, Gotha once again returned to its original purpose, building trams and light rail vehicles in the former East Germany.