Mercedes-Benz buys Chrysler for US$40 billion USD and forms DaimlerChrysler in the largest industrial merger in history.

Mercedes-Benz, often simply referred to as Mercedes, stands as a quintessential German luxury automotive brand. Its name, pronounced [mɛɐ̯ˈtseːdəsˌbɛnts, -dɛs-] in German, evokes a legacy of engineering excellence, opulent design, and groundbreaking innovation. Both the iconic brand itself and Mercedes-Benz AG, a vital subsidiary of the broader Mercedes-Benz Group established in 2019, proudly maintain their headquarters in the vibrant city of Stuttgart, located in the German state of Baden-Württemberg. From elegant passenger vehicles that define luxury on the road to robust commercial vehicles that drive industries, Mercedes-Benz crafts a diverse array of automobiles.

The journey of Mercedes-Benz-badged vehicles began in 1926, marking a pivotal moment in automotive history. This brand’s deep roots trace back even further to the dawn of motoring. Its heritage is inextricably linked to two monumental figures: Karl Benz, whose 1886 Benz Patent-Motorwagen is universally acclaimed as the world's first internal combustion engine-powered self-propelled automobile, and Daimler-Motoren-Gesellschaft, which introduced the revolutionary "Mercedes" car in 1901. This early "Mercedes" was named after Mercédès Jellinek, the daughter of Austrian automobile entrepreneur Emil Jellinek, a key figure in promoting Daimler cars. Mercedes-Benz has consistently set benchmarks in the premium segment; in 2018, it solidified its position as the largest seller of premium vehicles worldwide, achieving an impressive sales figure of 2.31 million passenger cars. The brand's unwavering commitment to excellence is encapsulated in its powerful and aspirational slogan: "the best or nothing."

The Mercedes-Benz Group AG: A Global Automotive Powerhouse

The overarching entity behind the esteemed Mercedes-Benz brand is the Mercedes-Benz Group AG, a German multinational automotive corporation headquartered in Stuttgart, Baden-Württemberg. This global powerhouse stands as one of the world's foremost car manufacturers, with a rich and complex history of evolution and transformation. The company's origins as a unified entity began in 1926 with the historic merger of two pioneering automotive firms: Benz & Cie. and Daimler Motoren Gesellschaft, forming Daimler-Benz AG.

Over the decades, the corporation underwent significant strategic changes, reflected in its evolving nomenclature. It was famously renamed DaimlerChrysler upon its acquisition of the American automobile manufacturer Chrysler Corporation in 1998, a transatlantic merger that aimed to create a global automotive giant. However, this partnership was eventually dissolved, and the company was again rebranded as Daimler AG in 2007 following the divestment of Chrysler. Finally, in February 2022, to better reflect its core luxury brand and strategic direction, the company adopted its current name, Mercedes-Benz Group AG. By 2021, Daimler AG, as it was then known, had firmly established itself as the second-largest German automaker and the sixth-largest worldwide by production volume, underscoring its significant global footprint.

Brands and Ventures Under the Group's Umbrella

The Mercedes-Benz Group AG oversees a distinguished portfolio of marques and maintains strategic investments across the automotive landscape. Its primary marques include the iconic Mercedes-Benz for cars and vans, which further encompasses the high-performance division Mercedes-AMG and the ultra-luxury marque Mercedes-Maybach. Additionally, the innovative urban mobility brand Smart falls under the Group's purview, offering compact and efficient vehicle solutions. Beyond its direct brands, the Group holds significant shares in various other vehicle manufacturers, including Daimler Truck (which was founded as a wholly owned subsidiary of the group before becoming an independent public company), the Chinese electric vehicle brand Denza, BAIC Motor, and the legendary British luxury sports car manufacturer Aston Martin. As a testament to its scale, the Mercedes-Benz Group ranks as the thirteenth-largest car manufacturer globally by unit sales.

The Group also extends its capabilities beyond vehicle manufacturing, providing essential financial services through its dedicated arm, Mercedes-Benz Mobility. This division supports customers and dealers with financing, leasing, and insurance solutions, among others. Reflecting its prominent standing in the European economy, the Mercedes-Benz Group is a key component of the Euro Stoxx 50 stock market index. The company's deep ties to its origins are evident in Stuttgart, where its expansive complex houses the central company headquarters, various Mercedes-Benz offices, a crucial car assembly plant, the immersive Mercedes-Benz Museum that chronicles its rich history, and the multi-purpose Mercedes-Benz Arena, symbolizing its cultural and economic impact.


Frequently Asked Questions (FAQs)

What is the difference between Mercedes-Benz and Mercedes-Benz Group AG?
Mercedes-Benz is the luxury automotive brand that produces cars and commercial vehicles. Mercedes-Benz Group AG (formerly Daimler AG) is the multinational parent company that owns the Mercedes-Benz brand, along with other brands like Smart, and manages various automotive and mobility ventures globally.
What does the name "Mercedes" mean or where did it come from?
The name "Mercedes" originated from Mercédès Jellinek, the daughter of Emil Jellinek, an Austrian automobile entrepreneur and influential figure who commissioned and marketed early Daimler cars around 1900. He insisted the cars be named after his daughter, a name that means "grace" or "mercies" in Spanish.
What is the origin of the Mercedes-Benz logo?
The iconic three-pointed star logo of Mercedes-Benz was conceived by Gottlieb Daimler in the early 20th century. It symbolizes the company's ambition for motorization "on land, on water, and in the air," representing the original Daimler engines' use in automobiles, ships, and aircraft.
What types of vehicles does Mercedes-Benz produce?
Mercedes-Benz produces a wide range of vehicles, including luxury passenger cars (sedans, SUVs, coupes, convertibles), high-performance vehicles under Mercedes-AMG, ultra-luxury vehicles under Mercedes-Maybach, and various commercial vehicles like vans and trucks.
Where is Mercedes-Benz headquartered?
Both the Mercedes-Benz brand and its parent company, Mercedes-Benz Group AG, are headquartered in Stuttgart, Baden-Württemberg, Germany.
What is Mercedes-Benz's brand slogan?
The brand slogan for Mercedes-Benz is "the best or nothing," reflecting its commitment to uncompromising quality and performance.
What other brands are part of the Mercedes-Benz Group?
Beyond the Mercedes-Benz brand (including Mercedes-AMG and Mercedes-Maybach), the Mercedes-Benz Group AG also owns the Smart brand. It also holds shares in other manufacturers such as Daimler Truck, Denza, BAIC Motor, and Aston Martin.