Nallinger joined Daimler Benz AG in 1922. He played an important part in the development of all-round independent suspension for passenger cars and in the introduction of (relatively) high speed diesel engines to passenger cars in the 1930s, something which has remained a key strength for the company ever since.
During the Nazi period he enjoyed the status of Wehrwirtschaftsführer, reflecting the important war-time contribution from European auto-makers to military equipment production in the principal belligerent states. He was appointed a director on the research and development side of the business in 1940 and in 1941 was appointed to the executive board. At this time he was also appointed a member of the "Deutschen Akademie der Luftfahrtforschung".(German Academy of aircraft research).
After the war he continued to play a leading role in the Daimler Benz Research and Development department, associated in particular with the company’s return to racing in 1954.
Fritz Nallinger retired from Daimler-Benz in December 1965.