In 1936, the engine size of the SW 35 was increased to 3.8 liters (inline six-cylinder engine) and become thereby the SW 38. This measure was not used to increase the maximum output of 140 hp, but only to maintain it. In the bad years of the depression, gasoline quality had deteriorated. The performance of the vehicle came from a 3.8 liter engine. Only a maximum speed of 4000 rpm was specified for the new engine and the compression was reduced to 6.8: 1. Nothing significant changed on the chassis. Between 1936 and 1939 a total of around 520 SW38 vehicles were built.

Hermann Spohn was a German body manufacturer. The body construction company founded by Hermann Spohn is mainly associated with their vehicle bodies for Maybach luxury automobiles. The company was founded in 1920 and closed in the summer of 1957.