This chapter discusses the musical and cultural impact of the Düsseldorf group Neu!, who consisted of Michael Rother (guitars) and Klaus Dinger (drums). The essay puts Neu!’s work in the context of how Krautrock music was part of the quest to establish a new sense of post-war West German cultural identity by establishing new musical forms that did not owe a debt to the Anglo-American blues tradition or conventional rock structures. Analysing their first three albums released in the first part of the 1970s – Neu!, Neu! 2, and Neu! ’75 – this chapter shows how Neu! arrived at a musical formula that reflected the opposite temperaments of the two group members, reflected in the ambient rock of Rother and the motorik beat of Klaus Dinger, creating an imaginary West German landscape travelling from the past, through the present to the future. The chapter concludes that although they were commercially unsuccessful at the time, Neu! were hugely influential and have established for all time a unique mode of rock musical being, West German in origin, which serves as a source of inspiration for present and future generations.

This chapter explores the fledgling countercultural popular music industry in Germany in the 1960s and 1970s and summarises the economic conditions under which Krautrock developed. Compared to Britain and the United States, Germany was a disadvantaged place for popular music production. The chapter gives an overview of the places, events, and people that prepared the ground for independent popular music production away from the Schlager-focused major labels. The role of music journalist Rolf-Ulrich Kaiser in organising Krautrock’s founding event, the International Essen Song Days in 1968, and his three influential record companies Ohr, Pilz, and Kosmische Kuriere, is highlighted. Independent record labels like Kaiser’s and others such as Brain and Sky enabled musical experimentation and allowed a German avant-garde interpretation of rock music to thrive. The chapter outlines Krautrock’s reception on the international market, considering commercial successes (Tangerine Dream, Kraftwerk) and failures (Faust). Independent record producers, most notably Conny Plank and Dieter Dierks, were indispensable for their creative contribution to many Krautrock records and as intermediaries between Krautrock artists and their record companies.