Mercedes-Benz Group

1926–1998: Daimler-Benz

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The Mercedes-Benz Group origin is in an Agreement of Mutual Interest signed on 1 May 1924 between Benz & Cie. (founded in 1883 by Carl Benz) and Daimler Motoren Gesellschaft (founded in 1890 by Gottlieb Daimler and Wilhelm Maybach). Both companies continued to manufacture their separate automobile and internal combustion engine marques until 28 June 1926, when Benz & Cie. and Daimler-Motoren-Gesellschaft formally merged – becoming Daimler-Benz AG (Aktiengesellschaft) – and agreed that thereafter, all of the factories would use the brand name of "Mercedes-Benz" on their automobiles. The inclusion of the name Mercedes in the new brand name honored the most important model series of DMG automobiles, the Mercedes series, which were designed and built by Wilhelm Maybach. They derived their name from a 1900 engine named after the daughter of Emil Jellinek. Jellinek became one of DMG's directors in 1900, ordered a small number of motor racing cars built to his specifications by Maybach, stipulated that the engine must be named Daimler-Mercedes, and made the new automobile famous through motorsports. That race car later became known as the Mercedes 35 hp. The first of the series of production models bearing the name Mercedes had been produced by DMG in 1902. Jellinek left the DMG board of directors in 1909.

The name of Daimler as a marque of automobiles had been given by Gottlieb Daimler^{[dubious – discuss]} for use by other companies. It is or was used principally by Daimler Motor Company and Austro-Daimler later Steyr-Daimler-Puch but also, very briefly by Daimler Manufacturing Company and Panhard-Daimler, and others. The new company, Daimler-Benz, did not obtain consent to include Daimler in its brand name and used the name Mercedes to represent the Daimler-Motoren-Gesellschaft interest. Karl Benz remained as a member of the board of directors of Daimler-Benz AG until his death in 1929.

Although Daimler-Benz is best known for its Mercedes-Benz automobile brand, during World War II, it also created a notable series of engines for German aircraft, tanks, and submarines. Its cars became the first choice of many Nazi, Fascist Italian, and Japanese officials including Hermann Göring, Adolf Hitler, Benito Mussolini and Hirohito, who most notably used the Mercedes-Benz 770 luxury car. Daimler also produced parts for German arms, most notably barrels for Mauser Kar98k rifles. During World War II, Daimler-Benz had over 60,000 concentration camp prisoners and other forced laborers to build machinery. After the war, Daimler admitted to its links and coordination with the Nazi government.

In 1966, Maybach-Motorenbau GmbH merged with Mercedes-Benz Motorenbau Friedrichshafen GmbH to form Maybach Mercedes-Benz Motorenbau GmbH, under partial ownership by Daimler-Benz. The company is renamed Motoren und Turbinen-Union Friedrichshafen GmbH (MTU Friedrichshafen) in 1969.

In 1989, Daimler-Benz InterServices AG (Debis) was created to handle data processing, financial and insurance services, and real estate management for the Daimler group.^[9]

In 1995, MTU Friedrichshafen became a wholly owned subsidiary of Daimler-Benz.

1998–2007: DaimlerChrysler

In a so-called "merger of equals," or "marriage made in heaven", according to its then CEO and architect Jürgen E. Schrempp,^[10] Daimler-Benz and United States–based automobile manufacturer Chrysler Corporation, the smallest of the main three American automakers, merged in 1998 in an exchange of shares^[11] and formed DaimlerChrysler AG. Valued at US$38 billion, it was the world's largest ever cross-border deal.^[12]

The terms of the merger allowed Daimler-Benz's non-automotive businesses such as Daimler-Benz InterServices AG, "debis AG" for short, to continue to pursue their respective strategies of expansion. debis AG reported revenues of $8.6 bn (DM 15.5 bn) in 1997.^[13][9]

The merger was contentious with investors launching lawsuits over whether the transaction was the 'merger of equals' that senior management claimed or actually amounted to a Daimler-Benz takeover of Chrysler. A class action investor lawsuit was settled in August 2003 for US$300 million while a suit by billionaire investor activist Kirk Kerkorian was dismissed on 7 April 2005.^[14] The transaction claimed the job of its architect, Chairman Jürgen E. Schrempp, who resigned at the end of 2005 in response to the fall of the company's share price following the transaction.^[15]

Another issue of contention is whether the merger delivered promised synergies and successfully integrated the two businesses. Martin H. Wiggers' concept of a platform strategy, like the VW Group's, was implemented only for a few models, so the synergy effects in development and production were low.^[16] As late as 2002, DaimlerChrysler appeared to run two independent product lines. Later that year, the company launched products that did integrate elements from both sides of the company, including the Chrysler Crossfire, which was based on the Mercedes SLK platform and utilized Mercedes's 3.2 L V6, and the Dodge Sprinter/Freightliner Sprinter, a re-badged Mercedes-Benz Sprinter van.

In 2000, DaimlerChrysler acquired the Detroit Diesel Corporation and placed its on-highway division under Daimler Trucks North America. The off-highway division was placed under MTU Friedrichshafen to form MTU America. Detroit Diesel branding has been maintained by DTNA and MTU America. In 2005, MTU-Friedrichshafen was sold to the Swedish investment firm EQT Partners. That same year, DaimlerChrysler entered into an alliance with Mitsubishi Motors Corporation in an effort to reach the Asian market.^[17] The alliance resulted in the platform sharing between the 2002-2013 Colt and first-generation Smart Forfour, but the declining performance of Mitsubishi led DaimlerChrysler to sell its shares back by 2004.^[18]

In 2006, Chrysler reported losses of US$1.5 billion. It then announced plans to lay off 13,000 employees in mid-February 2007, close a major assembly plant and reduce production at other plants in order to restore profitability by 2008. That same year, Chrysler was overtaken by Toyota in the US market, leaving it outside of the traditional "Big Three" of US automakers for the first time.^[19]

DaimlerChrysler had reportedly approached other carmakers and investment groups to sell Chrysler in early 2007. General Motors was reported to be a suitor,^[20] but Daimler agreed to sell the Chrysler unit to Cerberus Capital Management in May 2007 for US$6 billion and completed the sale on 3 August 2007.^[21] The original agreement stated that Cerberus would take an 80.1 percent stake in the new company, Chrysler Holding LLC. DaimlerChrysler changed its name to Daimler AG and retained the remaining 19.9% stake in the separated Chrysler LLC.^[22]

The terms saw Daimler pay Cerberus US$650 million to take Chrysler and associated liabilities off its hands. Of the US$7.4 billion purchase price, Cerberus Capital Management was to invest US$5 billion in Chrysler Holdings and US$1.05 billion in Chrysler's financial unit. The de-merged Daimler AG received US$1.35 billion directly from Cerberus but directly invested US$2 billion in Chrysler itself. Chrysler filed bankruptcy in 2009.^[23]

DC Aviation rose in 2007 from the previous DaimlerChrysler Aviation, an auxiliary of DaimlerChrysler AG, which was established in 1998.^[24]

2007–2022: Daimler AG

In May 2010, the Shenzhen BYD Daimler New Technology Co., Ltd., trading as "Denza" was established between BYD and Daimler^[25] to produce luxury electric vehicles.^[26]

In November 2014, Daimler announced it would acquire 25 percent of Italian motorcycle producer MV Agusta for an undisclosed fee.^[27] MV Holding acquired the 25 percent of MV Agusta back from Daimler in December 2017.^[28]

On 3 August 2015, Nokia announced that it had reached a deal to sell its Here digital maps division to a consortium of three German automakers—BMW, Daimler AG, and Volkswagen Group, for €2.8 billion.^[29] This was seen as an indication that the automakers were interested in automated cars.

In 2017, Daimler announced a series of acquisitions and partnerships with car startups focused on car sharing, in a move towards what it sees as the next generation of car ownership and usage.^[30] Part of its corporate strategy is to "transition from being an automobile manufacturer to a mobility services provider".^[30]

In April 2017 it announced a partnership with Via, a New York–based ride-sharing app, to launch a new ride-sharing service across Europe.^[31] In September, it was announced that Daimler had led a fundraising round for car-sharing start up Turo, which is a platform that lets owners rent their vehicles out to other users.^[32] It also acquired Flinc, a German startup that has built an app for peer-to-peer-style carpooling, has invested in Storedot, Careem, Blacklane and FlixBus, and has acquired car2go and mytaxi (now Free Now).^[30]

Li Shufu of Chinese automobile manufacturer Geely took a 9.69% stake in the company, through Tenaciou3 Prospect Investment Limited, in February 2018, making it the company's largest single shareholder.^[3] Geely is already known from its ownership of Volvo Car Corporation. In September 2018, Daimler invested $155 million in US-based electric bus and its battery management technology manufacturer Proterra.^[33]

In July 2019, BAIC Group purchased a 5% stake in Daimler, which is a reciprocal shareholder in BAIC's Hong Kong listed subsidiary.

In September 2019, Daimler announced that it would be "stopping its internal combustion engine development initiatives as part of its efforts to embrace electric vehicles."^{[34][better source needed]}

In February 2020, Daimler partnered with Twelve to create the world's first C-pillar made with polycarbonate from CO₂ electrolysis in an effort towards a fully carbon neutral fleet.^[35]

In September 2020, the company was fined 875 million dollars by the United States for having violated the Clean Air Act.^[36] It agreed to pay $1.5 billion to settle all related court actions.

In February 2021, Daimler said it planned to rename itself adopting the name of its flagship marque, Mercedes-Benz, and spun off its heavy commercial vehicles unit, Daimler Truck, into a separate listed company.^[37][38][39] Daimler Truck is listed on the Frankfurt Stock Exchange and its first trading day was on 10 December 2021.^{[40][41][42][43]}

In the 2021 review of WIPO's annual World Intellectual Property Indicators Daimler ranked 8th in the world, with 65 of its designs in industrial design registrations being published under the Hague System during 2020.^[44] This position is up on its previous 10th-place ranking in 2019.^[45]

Since 2022: Mercedes-Benz Group

On 28 January 2022, CEO Ola Källenius announced that Daimler will be rebranded as Mercedes-Benz to pursue a higher valuation for the company as it shifts deeper into high-tech electric vehicles.^[46][47][48] On 1 February 2022, Daimler officially changed its registered company name to Mercedes-Benz Group AG.^[49][50][51]

Sales of Mercedes-Benz Group vehicles in 2023 – 2,491,600 (+1.5%). Sales of superior products increased: Mercedes-Maybach (+19%), G-Class (+11%) and Mercedes-AMG (+4%). Fully electric Mercedes-Benz passenger car sales rose by 73% during the year. Only Core segment sales declined by 2%, with 1,096,800 units sold due to supplier bottlenecks and the transition to the new E-Class.^[52]

Business trends

The key trends for the Mercedes-Benz Group are (as at the financial year ending 31 December):^[53][54]

Management

Ola Källenius became the Chairman of Mercedes-Benz Group and Head of Mercedes-Benz Cars on 22 May 2019.^[55] As of May 2018^[update], the members of the Board of Management of Mercedes-Benz Group AG were:^[56]

• Ola Källenius: Chairman of the Board of Management of Mercedes-Benz Group AG and Mercedes-Benz AG.
• Renata Jungo Brüngger: Integrity and Legal Affairs.
• Jörg Burzer: Production and Supply Chain Management.
• Sabine Kohleisen: Human Resources and Director of Labor Relations.
• Markus Schäfer: Chief Technology Officer responsible for Development and Purchasing.
• Britta Seeger: Mercedes-Benz Cars Marketing and Sales.
• Hubertus Troska: Greater China
• Harald Wilhelm: Finance and Controlling and Head of Mercedes-Benz Mobility

2019 shareholder structure according to the BaFin

According to the German Securities Trading Act (Wertpapierhandelsgesetz, WpHG) paragraph § 38 owner of rights like financial options to buy common shares with voting rights have to be reported in case certain threshold values are achieved.^[57] These owners must report the sum of owned common shares and potential rights to buy additional shares.^[58]

The German Federal Financial Supervisory Authority (BaFin) reports the following shareholder structure based on § 39 WpHG, (Date: Tuesday, 19 November 2019):^[59]

• Bank of America Corporation: 20.25%
• BlackRock, Inc.: 5.09%
• Harris Associates L.P.: 4.93%
• Li Shufu with Tenaciou3 Prospect Investment Limited: 9.69%
• Morgan Stanley: 5.7%
• People's Republic of China: 5%

EADS shareholding

As of March 2010, Daimler owned a 22.5% share of EADS.^[60]

In April 2013, Daimler sold its shares in EADS,^[61] and the same year, EADS restructured itself into a new aerospace company named Airbus.

Leadership

North Charleston expansion

On 5 March 2015, Daimler AG announced a 1,200-job package to the North Charleston region for its van plant, to allow the company to start manufacturing Mercedes-Benz Sprinter vans from scratch to meet demand in North America. From 2010, these vans were set up in Germany, then shipped to the United States partially disassembled for reassembly to avoid import tariffs. A Daimler official said that the Sprinter's popularity in North America was making that process less efficient. The North Charleston plant had been employing only 100 workers. The Sprinter is available on the U.S. market as a panel van, crew bus and chassis in several variants with three lengths and roof heights, six-cylinder diesel or gasoline engines. The Sprinter has been assembled and sold in the United States since 2001.^[62]

Former

Share Now - Now part of Stellantis

Joint ventures and alliances

Electric

Daimler AG and the utility company RWE AG were set in 2009 to begin a joint electric car and charging station test project in the German capital, Berlin, called "E-Mobility Berlin".^[82]

Following trials in 2007 and then with Tesla in 2009,^[83][84] Daimler is building a production Smart electric drive car using Tesla's battery technology.^[85] Daimler temporarily invested in Tesla, saving it from bankruptcy.^[86] Daimler's joint venture with BYD^[87] has resulted in the creation of the new brand Denza.

In 2016, Daimler subsidiary ACCUMOTIVE announced their stationary batteries, to store up to 20 kWh of solar power for later use.^[88] Daimler plans to invest €1.5 billion in battery technology,^[89][90] and unveiled a factory in Kamenz in May 2017.^[91]

In September 2019, Daimler redirected its internal combustion engine development initiatives to focus on electric vehicle technologies,^[34] leaving electric propulsion rather less of an "alternative" and more the Daimler mainline. Their Research and Development department has developed a compostable battery that uses graphene-based organic cell chemistry. This means that no rare, toxic metals are needed for the battery, which makes it 100% recyclable.^[92]

Since 2019, fully electric cars have been released through the Mercedes-EQ brand.^[93]

Fuel cell

Daimler has been involved with fuel cell vehicle development for some time, with a number of research and concept vehicles shown and demonstrated, the first being the 2002 Mercedes-Benz F-Cell car and the Mercedes-Benz Citaro hydrogen bus. In 2013, the Renault-Nissan/Daimler alliance was joined by Ford to further develop the fuel cell technology with an aim for production by 2017.^[94][95]

Hybrid

Mercedes-Benz launched its first passenger car model equipped with a hybrid drive system in summer 2009, the Mercedes-Benz S-Class 400 Hybrid.^[96] and the Citaro Hybrid bus in 2007. Daimler Trucks and Mitusbishi Fuso have also trialed various hybrid models including the Mitsubishi Fuso Canter Eco Hybrid and Mitsubishi Fuso Aero Star Aero Star Eco Hybrid bus.^[97]

Biofuel research

Daimler AG is involved in a joint project with Archer Daniels Midland Company and Bayer CropScience to develop the semi-evergreen shrub jatropha curcas as a biofuel.^[98]

United States

In March 2024, workers at the Mercedes-Benz plant in Tuscaloosa County, Alabama filed charges against the company with the US National Labor Relations Board (NLRB), accusing the company of illegally disciplining workers at the plant in retaliation for organizing with the United Auto Workers (UAW) labor union.^[116] In May 2024, following the loss of a unionization vote at the plant, the UAW filed a formal complaint with the NLRB seeking a new election due to what it called "wanton lawlessness" on the part of Mercedes-Benz in the run up to the election, with the UAW accusing the company of holding anti-union captive audience meetings, targeting pro-union workers for drug tests, and illegally terminating UAW supporters.^[117][118]