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Mercedes-Benz, one of the most recognizable brand names globally, has traversed a challenging path to its prominence, marked by intense competition, post-war difficulties, and fuel crises. In this piece, we’ll briefly journey through the key moments in the history of the legendary Mercedes-Benz brand.
On October 1, 1883, in the form of an open trading partnership, Carl Benz, in collaboration with Max Kaspar Rose and Friedrich Wilhelm Esslinger, established the company Benz & Cie. As early as 1886, the enterprise showcased its first patented invention—a three-wheeled self-propelled carriage with a gasoline engine, marking the world’s first automobile!
A few years later, in 1893, Carl Benz obtained a patent for the double-pivot axle, initiating the production of a four-wheeled car named “Victoria.” The new model reached speeds of 17-20 km/h, quite fast for its time. In 1894, the first Velo model rolled off the assembly line, soon participating in the inaugural Paris-Rouen automobile race. Simultaneously, the company ventured into truck manufacturing, releasing the world’s first trucks in 1895, followed by buses.
The year 1896 was particularly significant for Benz & Cie. The company’s engineers introduced the world’s first cylinder for engines, later named the “contra engine.” Carl Benz explained the name by highlighting the engines’ opposing placement.
In 1901, the release of the Mercedes 35PS model by Daimler-Motoren-Gesellschaft revealed that Benz & Cie. was falling behind in overall automotive progress. Consequently, the company’s management decided to enlist the services of French engineer Marius Barbarou, a move that clashed with Carl Benz’s preferences (resulting in his departure from the company after numerous disagreements). Ultimately, Benz’s reservations were justified, as Barbarous tenure fell short of expectations, leading to his dismissal. German engineer Fritz Erle was then appointed in his place. Interestingly, Erle also struggled to produce the expected results during his tenure.
The company’s fortunes began to improve with the arrival of Hans Nibel, who played a key role in developing the legendary racing car “Blitzen Benz.” This car featured a 200-horsepower engine with a displacement of 21,594 cc.
Concurrently, Daimler-Motoren-Gesellschaft was also evolving. Its engineers made numerous important contributions to the automotive industry. The company itself was registered by Gottlieb Daimler in 1890.
Daimler’s crucial innovations came slightly before the company’s registration. In 1883, he developed a gas engine with hot-tube ignition and an engine speed regulation system using an exhaust valve. In 1885, the Daimler Reitwagen, a carriage with a gas or gasoline engine, was registered. To increase production capacity, the company acquired land with factory buildings from Vernicklungsanstalt Zeitler & Missel in 1887. This move allowed the company to introduce a new V-engine in 1889, featuring two cylinders and delivering 1.5 horsepower at 600 rpm. A year later, the first 4-cylinder four-stroke engine was created, designed by Wilhelm Maybach. An automobile equipped with this new engine produced 5 horsepower at 620 rpm. In 1895, the first Phonix automobile with a front-mounted engine was released.
Subsequently, the aforementioned Mercedes 35PS car was launched. The model achieved deserved success and played a pivotal role in the company’s development. Emil Jellinek, Consul of the Austro-Hungarian Empire in Nice and concurrently head of the Daimler-Motoren-Gesellschaft’s representation, insisted on naming the model in honor of the Virgin Mary of Mercy (Maria de las Mercedes). Interestingly, it’s now believed that the model was actually named after his daughter.
After World War I, the company began experimenting with superchargers to significantly enhance engine power. In 1924, Ferdinand Porsche perfected this development, presenting the world with the remarkable Mercedes-24/100/140PS car, featuring a new chassis and a six-cylinder supercharged engine capable of delivering 100-140 horsepower.
Examining the histories of these two companies, it is evident how they constantly moved side by side and how their developments relied on each other. At some point, their decision to merge becomes clear and somewhat predictable. However, of course, this was driven not only by the desire for technical progress.
The First World War introduced numerous changes to the development of absolutely all sectors: some changes proved beneficial, while others were destructive. The currency exchange rate collapsed, implying a decrease in purchasing power. Additionally, other automobile manufacturers entered the German market, including the Ford Motor Company. The influx of foreign brands into the market led to a significant structural crisis in the German automotive industry. This affected both Benz & Cie. and Daimler-Motoren-Gesellschaft.
On June 28, 1926, the two rivals made the decision to merge. At the helm of the new conglomerate, named Daimler-Benz, stood Ferdinand Porsche. His plans involved a complete overhaul of the production program, and automobiles would now be produced under the Mercedes-Benz brand. In 1928, he stepped down from his position, and Hans Nibel took his place. In 1935, Nibel handed over the management to chief designer Max Sailer. Under his guidance, the first serial production passenger car with a diesel engine, the Mercedes-Benz 260D, and the Mercedes-Benz 770 were created, which would later serve the Nazi leaders.
World War II posed a formidable challenge for the Daimler-Benz conglomerate. Prior to the two-week aerial bombardment in September 1944, the company was producing trucks and passenger cars. The damage from the air attack was so extensive that in January 1945, the board of directors declared that the company essentially no longer existed in a physical sense: the main workshop was 70% destroyed, the engine and bodywork workshops were 80% destroyed, and the diesel engine plant was completely leveled.The efforts to rebuild the company’s facilities only began in June 1946. The first car to hit the market after the war was the W136 sedan—a compact car with a 38 horsepower engine, marking the beginning of a new chapter in the brand’s history (later upgraded to 52 horsepower, with various body options available). By 1950, a somewhat strengthened Daimler-Benz company was already laying significant plans for the future, establishing a solid foundation upon which it would eventually become one of the leading automotive conglomerates worldwide.
A decade later, in 1960, the Mercedes-Benz conglomerate was not only known in post-war Europe but also worldwide. Its reputation extended beyond just the scale of production; it was renowned for the high quality of its automobiles. Later, not only did new classifications emerge for cars (roadsters, coupes, estates, and long-wheelbase versions), but also new designs that were more charismatic, lending those produced vehicles their legendary sporty and austere characteristics. The new models exuded an aggressive, masculine look while maintaining elegance and restraint.
During the 1970s and 1980s, the conglomerate faced an extremely unpleasant situation – the fuel crisis. The Arab-Israeli War of 1973 resulted in the entire civilized world, which supported Israel in the conflict, imposing restrictions on oil exports from the Organization of the Petroleum Exporting Countries (OPEC). This led to a sharp rise in oil prices and dealt a heavy blow to the global economy, including the Mercedes-Benz conglomerate. Overall, this impacted virtually all car manufacturers, prompting company management to approach production from a completely different perspective. This period also marked a turning point for the Ford Motor Company conglomerate.
Similar events occurred in 1979, but this time the crisis was triggered by the Islamic Revolution in Iran and the Iran-Iraq War. Since both Iraq and Iran were part of OPEC, they were unable to export oil. This, in turn, led to an increase in oil prices. Mercedes-Benz faced additional difficulties in procuring petroleum products and managing production costs.
In the 1980s, the world began to explore alternative forms of energy. Prototype electric and hybrid vehicles were developed. The fuel price crises and energy challenges of the 1970s and 1980s compelled the automotive industry to seek new solutions and technologies to enhance vehicle efficiency and reduce their impact on the environment.
During the 1990s and 2000s, the Mercedes-Benz company faced a significant increase in competition in the global automotive market. This period was marked by the emergence of new players, particularly from the Asian region, offering alternative car models with attractive prices and new technologies. These competitors, such as Toyota, Honda, Nissan, and Hyundai, actively began competing with Mercedes-Benz across various market segments, including the luxury class. In light of this competitive threat, Mercedes-Benz was compelled to reassess its strategy to remain at the forefront of the automotive industry.
Key aspects of this strategic overhaul included enhancing quality and reliability to counter the growing influence of competitors. Mercedes-Benz focused on improving the quality and reliability of its vehicles. The brand aimed to address reliability issues that might have arisen with earlier models and provided longer warranty periods for its cars.
Furthermore, the conglomerate actively incorporated cutting-edge technologies into its vehicles to stay at the forefront of innovation. This encompassed new safety systems, advanced communication and entertainment systems, as well as more efficient engines. The company continued to invest in branding and marketing, emphasizing the prestige, engineering achievements, and innovations of its brand. This effort helped maintain the high image of Mercedes-Benz as a leader in the automotive industry.
Like other automobile manufacturers, Mercedes-Benz continues to evolve and adapt to changing market conditions, technological advancements, and consumer needs.
The new era of Mercedes-Benz encompasses several key aspects:
Electrification: Mercedes-Benz is actively developing and promoting its electric vehicles. Individual electric models have already been introduced, and in the future, there’s an expectation of expanding the lineup of electric cars with more advanced technologies, increased autonomy, and improved charging infrastructure.
Innovative Design: The new era of Mercedes-Benz is also marked by innovative car designs that blend elegance and modern technologies to attract a new generation of consumers.
Services and Mobility: Like other manufacturers, Mercedes-Benz is also focused on providing various services and mobility solutions, such as car sharing, car subscriptions, and other services, to meet the changing needs of customers.
The history of Mercedes-Benz is tied to continuous evolution and a commitment to innovation in order to maintain its position as a leader in the global automotive industry. The company has firmly established its reputation as a symbol of luxury, engineering excellence, and cutting-edge technology. In this new era, Mercedes-Benz continues to embody its values and aims to provide customers with modern, environmentally friendly, and innovative vehicles.
