As it became clear that the W 25 was no longer competitive in the 1936 season despite two Grand Prix victories, the racing department appointed Rudolf Uhlenhaut as its own Technical Director. Together with his team, he immediately began developing a fundamentally new racing car. This was an unusual step, as the days of the 750-kilogram formula were numbered and a completely new engine-capacity-based regulations framework was set to come into effect from 1938.
After extensively testing the W 25 under racing conditions, Uhlenhaut chose a revolutionary chassis design for its successor, the W 125, featuring soft suspension and powerful damping. The engine was also thoroughly redesigned. Following an increase in displacement to 5.7 litres, the supercharged inline eight-cylinder engine produced up to 435 kW (592 hp) – around 73 kW (99 hp) more than the previous year's model. This level of power would not be matched by Grand Prix racing cars again until the late 1980s. The W 125 achieved a top speed of approximately 320 km/h and was instantly recognizable by the three cooling vents in its front section.
The new Silver Arrow won its very first race, the Tripoli Grand Prix in Libya, with Hermann Lang behind the wheel. With a total of seven victories, nine second-place finishes, and six third-place finishes, the W 125 dominated the 1937 racing season, while Rudolf Caracciola secured his second European Grand Prix Championship title.
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