INTRODUCTION TO MERCEDES-BENZ

Mercedes-Benz is a German automobile manufacturer, a multinational division of the German

manufacturer Daimler AG. The brand is used for luxury automobiles, buses, coaches, and trucks.

The headquarters of Mercedes-Benz is in Stuttgart, Baden-Württemberg, Germany. Mercedes-

Benz's slogan is "Das Beste oder nichts" in German and literally incorporated in English as "The

best or nothing". Mercedes-Benz is part of the "German Big 3" luxury automakers, along with

Audi and BMW, which are the best-selling luxury automakers in the world.

Few inventions have had as enduring an influence on the world's development as the invention of

the automobile. The pioneers of automobile manufacture towards the end of the 19th century

were Gottlieb Daimler (pictured below) (1834-1900) and Carl Benz (pictured below) (1844 1929).

They set up the predecessor companies, which merged to form Daimler-Benz AG in 1926 –,

Daimler with his Daimler Motorengesellschaft (DMG) and Benz with his Rheinische

Gasmotorenfabrik.

Gottlieb Daimler Carl Benz Wilhelm Maybach

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At the 1876 World Exposition in Philadelphia, Wilhelm Maybach (pictured above) had made the

acquaintance of William Steinway and introduced him to Gottlieb Daimler at the end of the

1880s. Following his visit to Cannstatt, Steinway secured himself the contractual right of

exclusive representation for the entire Daimler product range in the USA and Canada.

Carl Benz did not manage to forge closer foreign contacts until the end of the 19th century. In

addition to Britain, he celebrated surprising successes in the USA and South Africa.

Apart from their efforts to gain a foothold in foreign markets, both pioneers pressed ahead with

the continuous technical improvement of their products. For instance, Wilhelm Maybach,

working as an engineer at DMG, developed the spray-nozzle carburettor, a milestone in the

success story of the automobile.

This innovation represented a major breakthrough in engine design and the principle behind it is

still applied to this day. The first major long-distance tours in France and Britain demonstrated

the superiority of the petrol engine over its steam counterpart. The outstanding performance of

the Daimler engines marked the technical breakthrough for the automobile. The company had

already had the brand name "Mercedes" patented in 1902. To

satisfy the rising demand that accompanied the motor-racing

successes and to ensure the necessary expansion of production,

DMG decided to enlarge its factory and transferred production from Cannstatt to Untertürkheim

in December 1903.

From the very outset, both company founders were committed to the highest quality standards

("the best of the good", "the best or nothing"), a characteristic of the company to this day. In the

period preceding the First World War, despite increasing competition the enterprises founded by

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the pioneers developed into world-leading manufacturers of passenger cars and commercial

vehicles.

As in other industries, the companies strived to form larger units in order to achieve economies

of scale. After initially entering into a joint venture with the aim of rationalising production, and

with a major role also being played by Deutsche Bank, the two companies Daimler

Motorengesellschaft and Benz & Cie. finally merged in 1926 to form Daimler-Benz AG with its

registered office in Berlin and administrative headquarters in Stuttgart.

In 1928 the German automaker had only four basic models in the medium-size and luxury car

segments. Of these, the supercharged sports car in its various versions

S, SS and SSK (pictured on the right) was the showcase model of the

Mercedes-Benz brand which not only achieved motorsport success,

but also helped improve the company's export record.

During the period from 1949 to 1960, in the fast-expanding German automotive industry

Daimler-Benz AG succeeded in regaining the position it had enjoyed before the Second World

War. As early as 1954 the company cracked the billion mark in terms of turnover and with that

broke the existing sales record.

In passenger-car production, technically sophisticated, upmarket vehicles continued to be the

focus of the Mercedes-Benz brand. Apart from a few completely-knocked-down (CKD)

assembly operations, production of the vehicles took place in Germany alone. New cars and

successes in motorsport events, such as the Carrera Panamericana Mexico and Grand Prix racing,

made Mercedes-Benz the best-known German brand.

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The Mercedes-Benz 300 SL Gullwing (pictured on the right),

unveiled as a racing-car prototype in 1952, became the dream

car of an entire generation and significantly enhanced the

company‘s reputation. Models like the Mercedes 300

(Adenauer Mercedes) were symbols of the reconstruction and

the economic success of their owners.

The launch of the ―tailfin Mercedes‖ in 1959 represented a milestone in the field of automotive

safety. For the first time, the concept of front and rear crumple zones in conjunction with a rigid

passenger compartment was implemented.

The company‘s rapid growth can be attributed not least of all to exports, despite the high

absorptive capacity of the German market. Following the Second World War the Board of

Management even gave exports priority over domestic sales. The increasing concentration on

foreign markets led to foreign sales cracking the billion mark for the first time in 1959.

The most attractive export market was America, where Daimler-Benz of North America Inc. was

set up in 1955.

The breakthrough in the US market was achieved together with American car dealer Maximilian

E. Hoffmann. The 300 SL Gullwing and the 190 SL were successfully launched on the American

market with his help.

Daimler-Benz, an all-rounder of the automotive industry, retained its outstanding position in the

international motor-vehicle markets in the 1960s and 1970s while the industry overall was

subject to sharp fluctuations in sales. In Europe, Daimler-Benz was leader both in the production

of cars for a discerning clientele, as well as trucks and buses.

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With the significant increase in sales and production in the 1960s and 1970s the company

continued the steady upward trend that had prevailed since war's end and was not even

interrupted by the oil crisis of 1973, an unusually difficult year for the international automotive

industry.

With new structures and model series Daimler Benz opened up new dimensions in the car and

truck sectors. The company continued to aspire to offer premium products like the S-Class in all

divisions and segments. In this way, it managed to continuously extend the basis of its business.

The second oil crisis at the end of the 1970s, growing environmental discussion, and the advance

of new Asian competitors changed the basic conditions for further development of the company.

With operating results declining overall, the commercial-vehicle sector went into the red. The

sales opportunities for top-quality cars in the markets relevant to Mercedes-Benz also attracted a

cautious assessment.

In 1995 the new Chairman of the Board of Management, Jürgen E. Schrempp, initiated a

strategic realignment of the group, since many of the existing business units did not enjoy a

favorable competitive position.

The portfolio was focused by parting with Fokker, selling Dornier Luftfahrt GmbH and

dissolving AEG. This move, together with measures designed to boost competitiveness, was

intended to strengthen the earning power of the group, which now concentrated on automotive

mobility, transportation, and services.

Extending the core businesses, supplementing them with new products and services, and

improving the competitive position in global terms took priority over new business fields.

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On 7 May 1998, Daimler-Benz Aktiengesellschaft in Germany and Chrysler Corporation in the

United States of America signed a merger contract.

Considering advancing globalization, among other things,

car production was taken up in Tuscaloosa in 1995, and in

1998, the merger with Chrysler Corporation to form

DaimlerChrysler AG was announced. The intention of the

merger was to safeguard the long-term competitiveness of

the companies involved.

Simultaneously, Mercedes-Benz launched a strategic model initiative in the car sector. New

model series like the A, B and M-Class, niche models like the SLK and CLK, and the

cooperation with Schweizerische Gesellschaft für Mikroelektronik und Uhrenindustrie (SMH) to

develop the small city car smart made Mercedes-Benz a full-line supplier.

The merger with the Chrysler Corporation and the taking of stakes in the Asian automakers

Mitsubishi Motors and Hyundai Motor Company had pursued the aim of making the company a

world-leading automotive group. With an eye to more favorable long-term market prospects, in

2007 the majority stakes in the Chrysler Group and the associated North American financial

services business were sold. The cooperative links with both Mitsubishi Motors and Hyundai

Motor Company was also gradually severed.

In October 2007, an extraordinary general meeting approved the change of name from

DaimlerChrysler AG to Daimler AG. Approximately 99 per cent of the 5,000 assembled

shareholders voted in favour of this change. The renaming of the company involved renaming

also of production facilities and sales organisations both in Germany and overseas. The guiding

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principle behind this name change was the need to make a clear distinction between the company

brand Daimler and the Group‘s various product brands.

Some two years later, on 27 April 2009, Daimler AG also relinquished the 19.9 percent stake,

which it had initially retained in Chrysler.

The increasingly gloomy automotive market situation also led to losses at Daimler AG from mid-

2008. In early 2009 Daimler raised its capital stock by about ten percent and gained Aabar

Investments PJSC, an investment company listed in Abu Dhabi, as a new major shareholder. The

company's sound financial position enabled it to continue investing large sums in research &

development in a period that was characterized by economic uncertainty and macroeconomic

instability.

This work focused mainly on developing new, alternative drive technologies, which were

deployed, for example, in the B-Class F-Cell, the Concept Blue Zero E-Cell Plus and the S 500

Plug-in Hybrid technology. With these developments, Daimler plays a pioneering role on the

path to sustainable, emission-free mobility.

Both in the passenger-car and commercial vehicle sectors, despite the crisis Daimler AG

continued to develop and expand business activities with a view to future market potentials in the

Asian market. The cooperation with Beijing Automotive Industry Holding Company (BAIC) has

resulted in a new production facility in Beijing, which produces the E-Class and C-Class for the

Asian market.

Even after 125 years, Daimler AG carries on the pioneering spirit and outstanding quality

standards of the original founders and sets the pace in the international automotive industry with

high-quality, technologically innovative products.

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 INTRODUCTION TO MERCEDES-BENZ INDIA PRIVATE LIMITED

Mercedes-Benz India Pvt. Ltd. is a wholly owned subsidiary of the German Daimler AG founded

in 1994, with headquarters in Pune, Maharashtra, India. Established in 1994, Mercedes-Benz

India Pvt. Ltd. pioneered the luxury car market in India and boasts of more than 128 years of

cutting edge innovation in the luxury automobile industry globally.

Daimler entered the Indian market and set up Mercedes-Benz India Ltd in 1994. The company

was renamed DaimlerChrysler India Pvt. Ltd. after the merger of the parent company Daimler

with Chrysler. After DaimlerChrysler sold off most of its equity interests in Chrysler in 2007, it

changed its name to Daimler AG. As a result, DaimlerChrysler India was renamed Mercedes-

Benz India once again. Mercedes-Benz India is a wholly owned subsidiary of the Daimler AG.

The company is headquartered In Chakan, Pune, Maharashtra. Mercedes-Benz was recognized

among India‘s Top 100 Most Trusted Brands published by The Brand Trust Report and also won

the Best Brand Award by Auto India Best Brand Awards in 2011.

With a world class production facility spread over 100 acres in Chakan, near Pune, set up in

2009 and an independent assembly facility for passenger cars; the facility is among the fastest

green-field operations ever to be created and is rated among the top most CKD (Completely

Knocked Down) plants of Mercedes-Benz, globally.

Mercedes-Benz India product portfolio comprises the locally produced S-Class, E-Class, C-

Class, GL-Class and the M-Class. Completely Built Imported cars include the A-Class, CLS-

Class, SLK-Class and the luxury tourer B-Class etc. The product portfolio also comprises

offering the iconic off-roader G 63 AMG as well as a wide range of other AMG performance

cars like the C 63 AMG, E 63 AMG, SLK 55 AMG, GL 63 AMG etc. Mercedes-Benz India‘s

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strong focus on its four pillars of Products, Network, Cost of Ownership and Brand experiences

has led the company‘s growth story with a total of 64 outlets located in 36 Indian cities, making

it the brand with the densest network in the luxury segment.

Things to note about Mercedes-Benz India Pvt. Ltd.

Type 100%-owned Subsidiary of Daimler AG

Mercedes-Benz has been associated with India for more than 50 years. Presently, Mercedes-Benz

India‘s engagement in India covers several domains:

Local production of Mercedes-Benz cars

Making available imported Mercedes-Benz cars

Commercial Vehicle operations

Global sourcing of auto components

Captive automotive technology research and development

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