From Daimler AG to Mercedes Benz

The Mercedes-Benz Group AG (formerly Daimler AG) is one of the world’s most successful automotive companies. Through Mercedes-Benz AG, the Group stands as a leading global supplier of high-end passenger cars and premium vans. Mercedes-Benz Mobility AG provides a range of services, including financing, leasing, car subscription and car rental, fleet management, digital services for charging and payment, insurance brokerage, and innovative mobility services.

The company’s headquarters, the Mercedes-Benz offices, a car assembly plant, the Mercedes-Benz Museum and the Mercedes-Benz Arena are all in the Mercedes-Benz complex in Stuttgart.

Mercedes Benz AG is listed on the Frankfurt and Stuttgart stock exchange, with more than one billion shares circulating as of December 31, 2023. The   company sells its vehicles and services in almost every country globally and has production facilities in Europe, North and Latin America, Asia and Africa.

About Mercedes-Benz

The Mercedes-Benz Group AG (formerly Daimler-Benz, DaimlerChrysler and Daimler) is a German multinational automotive corporation. As one of the world’s leading car manufacturers, it was formed in 1926 through the merger of Benz & Cie., the world’s oldest car company, and Daimler Motoren Gesellschaft in 1926.

The company became DaimlerChrysler after acquiring the American automobile manufacturer Chrysler Corporation in 1998 and was renamed Daimler AG following the sale of Chrysler in 2007.

In 2021, Daimler AG ranked as the second-largest German automaker and the sixth largest worldwide by production. In February 2022, Daimler was renamed Mercedes-Benz Group as part of a transaction that spun-off its commercial vehicle segment into an independent company, Daimler Truck.

The Mercedes-Benz Group’s brands include Mercedes-Benz for cars and vans (including Mercedes-AMG and Mercedes-Maybach) and Smart. The Group also holds shares in other vehicle manufacturers such as Daimler Truck, Denza, BAIC Motor and Aston Martin.

By unit sales, the Mercedes-Benz Group was the tenth-largest car manufacturer globally in 2021, shipping two million passenger vehicles, and by revenue, it ranked as the sixth-largest car manufacturer worldwide in 2022.

In 2023, the company was ranked 42nd in the Forbes Global 2000. The Group provides financial services through its Mercedes-Benz Mobility arm and is a component of the Euro Stoxx 50 stock market index.

History

The company’s founders, Gottlieb Daimler and Carl Benz, made history by inventing the automobile in 1886. Carl Benz developed the first stationary gasoline engine, a one-cylinder two-stroke unit which first ran on New Year’s Eve in 1879. The commercial success of this allowed Benz to dedicate more time to his dream of creating a lightweight car powered by a gasoline engine, where the chassis and engine formed a single unit.

Inventing the automobile: 1886 -1920

Few inventions have had as lasting an impact on the world’s development as the invention of the automobile. The pioneers of automobile manufacture in the late 19th century were Gottlieb Daimler (1834-1900) and Carl Benz (1844-1929).

They established the predecessor companies which merged to form Daimler-Benz AG in 1926, Daimler with his Daimler Motorengesellschaft (DMG) and Benz with his Rheinische Gasmotorenfabrik.

Although Gottlieb Daimler and Carl Benz never met personally, they simultaneously developed the world’s first automobiles in Mannheim (Benz) and Stuttgart (Daimler) in the year 1886. However, it took several years from the invention of the automobile to its economic exploitation.

Between the wars: 1920-1933

The end of the First World War presented significant challenges for the German automotive industry. From 1914 to 1919, development work on civilian products had been minimal. Economically, the collapse of the currency, the increasing number of new automotive companies previously operating in the armaments sector, and the loss of crucial foreign markets had a negative effect.

Reconstruction: 1945-1949

In 1945, the aftermath of World War II was disheartening for the company. Under the Potsdam Agreement, all German assets abroad were seized and used for the payment of reparations. Daimler-Benz lost all its foreign subsidiaries, affiliates and branches as well as assets in the Soviet-occupied areas.

Economic miracle and return to the world market: 1949-1960

From 1949 to 1960, amid the fast-growing German automotive industry, Daimler-Benz AG successfully regained its pre-World War II position. By 1954 the company had surpassed the billion mark in turnover, setting a new sales record.

Growth in all areas: 1961 -1983

Throughout the 1960s and 1970s, Daimler-Benz, an all-rounder of the automotive industry, maintained its exceptional position in global motor-vehicle markets despite sharp sales fluctuations across the industry. In Europe, Daimler-Benz led both in manufacturing high-end cars for a discerning clientele and in producing trucks and buses.

With the significant rise in sales and production during the 1960s and 1970s, the company maintained its steady upward trend since the end of the war. This growth continued even during the oil crisis of 1973, which was a particularly difficult year for the global automotive industry.

The DaimlerChrysler AG merger

In response to advancing globalisation, Daimler Benz began car production in Tuscaloosa in 1995. In 1998, the company announced its merger with Chrysler Corporation to form DaimlerChrysler AG. The merger aimed to ensure the long-term competitiveness of both companies.

At the same time, Mercedes-Benz launched a strategic model initiative in the car sector. The introduction of new model series such as the A, B and M-Class, along with niche models like the SLK and CLK, and the cooperation with Schweizerische Gesellschaft für Mikroelektronik und Uhrenindustrie (SMH) to develop the compact city car smart, established Mercedes-Benz as a full-line supplier.

Global economic crisis and recovery: 2008 – 2009.

The 2008 real-estate crisis in the USA triggered a global recession. Initially, it only hit the finance sector, but it escalated by the end of 2008 into a global economic crisis that severely impacted the automotive industry worldwide.

The increasingly gloomy automotive market situation also led to losses at Daimler AG starting in mid-2008. In early 2009, Daimler increased its capital stock by approximately 10% and welcomed Aabar Investments PJSC, an Abu Dhabi investment company, as a major new shareholder. The company’s strong financial position allowed it to continue investing heavily in research & development during a time period marked by economic uncertainty and macroeconomic instability.

Boom and globalisation: 2010 – 2011

Following the 2008/2009 financial and economic crisis, which caused significant market declines, Daimler achieved a shining comeback in 2010, posting double-digit growth rates across all business divisions.

Electric mobility and restructuring: 2016 – 2020

During this period, the company celebrated milestones such as the anniversary of its smallest model, the opening of a state-of-the-art test center and significant progress in electric mobility across all segments. Additionally, the company undertook a major restructuring.

The coronavirus pandemic defined 2020 and impacted all Daimler divisions. Despite the challenges and restrictions of the pandemic, the company advanced its sustainable business strategy, introduced new models, and started future-focused production in Sindelfingen. Daimler Trucks presented the fuel-cell concept truck while Mercedes-Benz set a new path towards profitable growth in the luxury segment.

Coronavirus pandemic

At the start of the year, few could have anticipated the extent of the impact the global pandemic would have. The pandemic significantly affected society, politics, and the world economy, including Daimler. The company took extensive measures to contain the spread of coronavirus, prioritising the health and safety of its employees. To protect against infection, Daimler implemented a comprehensive set of measures with the General Works Council and the company relied on mobile working wherever possible.

Transition to Mercedes-Benz Group: 2022 – present:

On 28 January 2022, CEO Ola Källenius announced that Daimler would be rebranded as Mercedes-Benz to enhance the company’s valuation and focus more on high-tech electric vehicles. On 1 February 2022, Daimler officially changed its name to Mercedes-Benz Group AG.

In 2023, Mercedes-Benz Group sold 2,491,600 vehicles, reflecting a +1.5% increase. Sales of premium models saw significant growth, with Mercedes-Maybach up 19%, G-Class up 11%,  and Mercedes-AMG up 4%. Fully electric Mercedes-Benz passenger cars experienced a 73% rise in sales during the year. However, Core segment sales declined by 2%, totalling 1,096,800 units, due to supplier bottlenecks and the transition to the new E-Class.

Artificial intelligence and a sustainable business strategy: 2023

In a challenging geopolitical and economic environment, Mercedes-Benz remains on course. The company is advancing its sustainable business strategy, with a strong emphasis on high-end passenger cars and premium vans, enhancing resilience. New, exciting products are being introduced, including the E-Class as a saloon and estate car, the coupé CLE and the new eSprinter.

Advancing digitalisation is transforming the world of work, creating new job profiles and using artificial intelligence across all areas. The highly efficient Concept CLA Class offers a preview of the performance of the forthcoming MMA platform. In the USA, China and Germany, the company’s first own quick charge parks are operational. Additionally, a crash test unlike any seen before highlights the exceptional safety standards of Mercedes-Benz electric vehicles.

Financial performance of Mercedes Benz at 2023

Mercedes-Benz Group AG reported solid 2023 financial results. With a sharpened focus on high-demand cars and vans, combined with ongoing cost discipline, the Group achieved Earnings Before Interest and Taxes (EBIT) of €19.7 billion, compared to 2022. Revenues increased to €153.2 billion, up from €150.0 billion the previous year.

In 2023, Mercedes-Benz Cars achieved an adjusted Return on Sales (RoS) of 12.6%, while Mercedes-Benz Vans reported an adjusted RoS of 15.1%. Mercedes-Benz Mobility had an adjusted Return on Equity (RoE) of 12.3%. These results were accomplished despite a challenging environment marked by supply-chain constraints and geopolitical and macroeconomic volatility.

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