Hollidt realized that he needed to counter-attack immediately, before Tolbukhin got his mechanized corps across the Mius and before the XVII Armeekorps was overwhelmed. He appealed to von Manstein and the OKH for assistance, but decided to commit von Schwerin’s 16.Panzergrenadier-Division as soon as possible. Von Manstein had already committed part of Nehring’s XXIV Panzerkorps to deal with Malinovsky’s diversionary attacks around Izyum, but sent the 23.Panzer-Division on its way to Hollidt. Hitler ordered von Manstein to transfer two divisions from the II.SS-Panzerkorps and the 3.Panzer-Division to eliminate the Soviet bridgehead across the Mius front, but they would take time to disengage from the Belgorod sector.
On the morning of 18 July, von Schwerin’s division attempted to attack the left side of the Soviet bridgehead, but soon ran straight into Sviridov’s 2 GMC, which had crossed the Mius. Intense Soviet anti-tank and artillery fire broke up the German attack and von Schwerin retreated after losing 20 tanks. Once the German counter-attack had been repulsed, the 5th Shock Army continued to advance and captured the towns of Stepanovka and Marinovka. By the end of the second day, Tolbukhin’s bridgehead across Mius had been enlarged to 30km deep and 45km wide. Upon learning of von Schwerin’s defeat, Hollidt requested that Generalleutnant Nikolaus von Vormann’s 23.Panzer-Division move up quickly and launch another counter-attack against the bridgehead on 19 July. Kampfgruppe Sander, which included I./Pz.Rgt.201, a company of Marder tank destroyers and a reconnaissance company, moved out on the evening of 18–19 July and conducted a 170km night road march, with the rest of the division following. Amazingly, von Vormann’s division was able to begin an attack toward Stepanovka at 0700 hours on 19 July, but quickly ran into strong anti-tank defences, supported by tanks from 2 GMC and 4 GMC. The 16.Panzergrenadier-Division conducted a supporting attack with its 20 operational tanks. Despite some Stuka sorties and an artillery preparation, two attacks on Stepanovka were repulsed. The I./Pz.Rgt.201 lost 11 tanks destroyed and all four company commanders were killed or wounded. Altogether, 23.Panzer-Division suffered 369 casualties, including 112 dead or missing. Von Vorman claimed that his division had knocked out 14 enemy tanks and 20 anti-tank guns, but the Soviet line was barely dented.140
Following this failed attack, both the 16.Panzergrenadier-Division and the 23.Panzer-Division shifted to the defence from 20–29 July, assisting the XVII Armeekorps’ defence. Although Tolbukhin’s infantry and armour pounded on the thin German line around the bridgehead on 20–21 July and even gained a little more ground, they could not break out. On the afternoon of 22 July, Tolbukhin committed Tanaschishin’s 4 GMC against the 16.Panzergrenadier-Division sector southwest of Stepanovka. Tanaschishin advanced with more than 140 tanks in a large formation, while von Schwerin only had a few tanks left and the assault guns of Sturmgeschütz-Abteilung 236. Once again, it was Luftwaffe batteries of 8.8cm flak guns that saved the day, destroying much of Tanaschishin’s armour before it could overrun von Schwerin’s frontline positions – the 4 GMC attack collapsed.141Following the repulse of 4 GMC’s breakout attempt, a brief lull settled over the Mius Front, as Tolbukhin regrouped for another offensive. Nehring’s XXIV Panzerkorps arrived in sector and took command over both 16.Panzergrenadier-Division and 23.Panzer-Division, as well as the attached Sturmgeschütz-Abteilungen. Nehring concentrated the remaining 33 tanks and 47 assault guns into mobile reserves to help hold the HKL, which was desperately short of infantrymen. Meanwhile, Hausser’s II.SS-Panzerkorps and the 3.Panzer-Division were en route by rail to make an all-out counter-attack. Hitler decided that he wanted the