In the summer of 1942 the 3. Panzer-Division, under the command of Generalmajor Hermann Breith, formed part of the German forces committed to Fall Blau, the major offensive launched on the southern sector of the Eastern Front with the strategic aim of seizing the Caucasian oil fields. After participating in the successful counteroffensive that eliminated the Soviet bridgehead west of the Donez during the Second Battle of Kharkov in May, the division was fully reconstituted and assigned to the XXXX. Panzerkorps within the 1. Panzerarmee of Heeresgruppe A. Beginning on 28 June it advanced rapidly eastward from the Kharkov area toward Voronezh, contributing to the capture of that city by early July before turning south along the Don. Crossing the lower Don near Rostov, the division pressed deep into the Kuban steppe and the northern Caucasus, covering hundreds of kilometres in successive advances that carried its Panzer-Regiment 6 and supporting Panzergrenadier elements through Armavir and beyond. By mid-August the 3. Panzer-Division had reached the Terek River sector near Mozdok, where it engaged in intense fighting against determined Soviet defences protecting the approaches to Grozny. Supply difficulties, fuel shortages and lengthening lines of communication progressively slowed the advance, while Soviet resistance stiffened amid the rugged terrain of the Caucasus foothills. Throughout these operations the division’s tanks, predominantly Panzer III and Panzer IV models, spearheaded rapid thrusts in cooperation with neighbouring formations such as the 13. Panzer-Division and 23. Panzer-Division. Despite initial successes that brought German forces to within striking distance of the vital oil centres, the offensive ultimately stalled short of its objectives. Heavy casualties accumulated during the prolonged engagements around Mozdok and along the Terek, depleting the division’s combat strength by the end of the summer campaign. On 1 October 1942 command passed from Generalleutnant Hermann Breith to Generalleutnant Franz Westhoven as the division prepared for further operations in the Caucasus theatre.
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