Coming into existence in 1942, after changes to motorized and Panzer divisions, the Panzer-Grenadier as a mixed infantry/motorized unit was born. By the time of the Normandy Campaign, there was no doubt these units, which were in either Pz. or PzG. divisions, were some of the best equipped and trained men that the Wehrmacht had at its disposal.
Unlike their American counterparts but similar to their British counterparts, only one Panzergrenadier battalion is usually mounted in Sd.Kfz. 251/1 while the other battalions are mounted in trucks. 2. Panzer has two Panzergrenadier Battalion mounted in Sd.Kfz. 251/1. 21. Panzer had two battalions mounted in U304(f). Panzer-Lehr has all of their Panzergrenadier Battalions equipped with Sd.Kfz. 251/1.
The two SS Panzer Divisions have two regiments of three battalions. One of the Battalions was mounted in Sd.Kfz. 251/1 while the other five were mounted in trucks.
Though the large squad size and heavy fire-power distinguishes this unit, it should not be used for close engagements. The Panzer-Grenadier is best used in 400-300m situations, and in conjunction with advancing armor. The panzerfaust, an excellent tool, should not be the only anti-tank asset on the field for any Panzer division. Thusly, the PzG squad is the ideal open terrain unit, out-gunning most Allied units at the 300m range. All this said, a lone squad is not going to be able to stop an enemy advance, so support, either in armor or infantry, must be close.
Take note, that Pz.Grenadier's strongest weapon, the "2x Leichtes MG 42 (7.92mm)" can only shoot between 101m and 400m and only while stationary, i.e. while the unit is not moving. While the unit is moving, its strongest weapon does not shoot, and as soon as the distance falls to 100m or less, it does not shoot:
Do not let enemy infantry get as close as 100m or less to Pz.Grenadier! Pionier suffer the same problem, but do double the damage at 100m and less and have 2 satchel charges.
Consider stopping the unit (even when in open terrain) to make the double MG42 fire again. That way, a rather defensive weapon can be used in a more offensive role.
Do have a good look at the map, and notice, that a great deal of the urban warfare in Steel Division 44 happens at more then 100m! The open spaces between buildings fundamentally allows units in the back to take effect further ahead.
Even the dumb A.I. takes armored vehicles into urban warfare! When you don't, or when your Tank or AT gun just can't get into the right angle, consider advancing Pz.Grenadier to the point, where they can use their Panzerfaust 60 (or field some Pz.Schreck)! Keep in mind, that a unit receives a penalty of up to -4 to its accuracy from its stress level!
Fighting (multiple) enemy units in dense forrests clearly puts Pz.Grenadier at a very serious disadvantage! Micromanage: at least, try to keep the fighting stationary.