Throughout the war the German tank forces were to make considerable use of captured enemy material. Although Austrian armoured fighting vehicles cannot be really labelled as captured since they never took part in any combat and were simply handed over to the Germans, their use represented the beginning of a regular pattern. The first pieces of equipment which fell into German hands were the few Austrian fighting vehicles then in service with Bundesheer. Along with 47 armoured cars there were 74 imported Italian Carro Veloce (CV) 33/35 tankettes designated in Austrian service as Kleinkampfwagen M. 1933 / 1935. These were used to temporarily equip the new Panzer regiments during formation and training. Eventually they were used as ammunition carriers, later some were sold to Hungary.
On 3-4 October 1938 Germany took over the Sudetenland as provided for by the Munich agreement of September 1938. By 10 October the takeover was completed; the only Panzer unit involved this time was the 1st Panzer Division. Once again Hitler breathed a sigh of relief that no armed conflict took place.
In November 1938 Heinz Guderian was promoted to General der Panzertruppen and received his most important assignment, which well may have changed history - he became Chef der Schnellen Truppen (Chief of the Fast Troops). It meant that Guderian was responsible for the recruiting, training and tactics of all the Wehrmacht’s motorised and armoured units.
Under his guidance, six new Panzer units were formed. These new units included two new Panzer divisions; the 4th Panzer Division (also known as the 7th Panzer Brigade ) was formed on 10th October 1938 at Wurzburg and the 5th Panzer Division (also known as the 8th Panzer Brigade) formed on 25th October 1938 at Oppeln. Also formed were the 4th Panzer Brigade at Stuttgart, the 5th Panzer Brigade at Bamberg, the 6th Panzer Brigade at Wurzburg and the 8th Panzer Brigade at Sagan. In addition, the 23rd. 31st, 35th and 36th Panzer Regiments were also formed along with Panzer Abteilungs 65, 66 and 67.
The 4th Panzer Division incorporated the 7th Panzer Brigade, composed of the 35th and 36th Panzer Regiments commanded by General Major George Hans Reinhardt. The new 5th Panzer Division incorporated the 8th Panzer Brigade, composed of the 15th and 31st Panzer Regiment and was commanded by General-Lieutenant Heinrich Vietinghoff-Scheel. Panzer Abteilung 65, 66 and 67 were respectively assigned to the 1st, 2nd and 3rd Light Divisions.
In March 1939. Germany took over the remaining part of Czechoslovakia. Once again only a single unit was involved in the initial moves - this time the 3rd Panzer Division. Elements of the division reached Prague at 8.20 am on 13 March 1939; they were followed by the 6th Panzer Regiment which rolled in during the afternoon. On 15th March, the first parade of German tanks in Prague took place.