On 2 October 1940, following the Battle of France, "Panzer-Regiment" 2 was subordinated to the 16th Panzer Division. Strachwitz asked the divisional commander "Generalmajor" Hans Hube for the command of a Panzer company, and Hube gave Strachwitz the I. Bataillon, a position he held until October 1942. Strachwitz and his men trained on the new Panzer III with 5 cm KwK 38 cannon. He paid special attention to the training and integration of the replacements crews which joined his unit. In December 1940, 16th Panzer Division was declared a "Lehrtruppe" (demonstration troop), a unit to be involved in experimentation with new weapons and tactics. Via Bavaria, Austria and Hungary they were transferred to Romania, with Strachwitz's I. Battalion stationed at Mediaș.