Mercedes-Benz Group AG
Company History
Mercedes-Benz History: Founding, Growth & Key Milestones
Founded 1926 in Stuttgart, Germany
When was Mercedes-Benz founded?
Mercedes-Benz was founded in 1926 in Stuttgart, Germany by Karl Benz and Gottlieb Daimler, making it 100 years old.
- Founded
- 1926
- Founding place
- Stuttgart, Germany
- Founders
- Karl Benz and Gottlieb Daimler
- Headquarters today
- Stuttgart, Germany
- Milestones documented
- 14 (1886–2026)
- Current CEO
- Ola Källenius
- Acquisitions
- 4
| Year | Event |
|---|---|
| 1886 | Benz Patent-Motorwagen |
| 1926 | Daimler-Benz AG formed |
| 1954 | 300 SL Gullwing launch |
| 1998 | DaimlerChrysler merger |
| 2006 | Dieter Zetsche |
| 2007 | Chrysler divestiture refocused the company |
| 2016 | Mercedes-Benz launched the EQ brand |
| 2019 | Ola Källenius |
| 2021 | Daimler Truck Spin-Off |
| 2021 | YASA Acquisition |
| 2023 | ~$173B (€153.2B) revenue peak |
| 2024 | ~$165B (€145.6B) revenue |
| 2025 | Revenue falls to ~$149B (€132.2B) |
| 2026 | Athlon sold to Arval |
- Where was Mercedes-Benz founded?
- Mercedes-Benz was founded in Stuttgart, Germany in 1926.
- Who founded Mercedes-Benz?
- Mercedes-Benz was founded by Karl Benz and Gottlieb Daimler.
- When did Mercedes-Benz start?
- Mercedes-Benz was founded in 1926.
- How old is Mercedes-Benz?
- Mercedes-Benz is 100 years old as of 2026.
Founding Story
In August 1888, Bertha Benz took her husband Karl's Patent-Motorwagen No. 3 without telling him and drove about 106 km from Mannheim to her mother's home in Pforzheim with her two teenage sons. Along the way she bought ligroin fuel from a pharmacy, cleared a blocked fuel line with a hatpin and had a cobbler fit leather to the brakes. The trip showed that the automobile could handle real roads and real breakdowns, and the publicity helped Benz & Cie. sell a machine buyers had been wary of.
Founders
Karl Benz
Mercedes-Benz possesses the most historic, foundational founding story in the entire global automotive industry, representing the effective, simultaneous invention of the modern automobile by two independent German engineers who never actually met. The modern corporate lineage traces back to 1886. In rural Cannstatt, Germany, Gottlieb Daimler and his effective engineering partner Wilhelm Maybach possessed a 'eureka' moment. They invented a compact, reliable, high-speed internal combustion engine (the 'Grandfather Clock' engine) and attached it to a modified wooden stagecoach, creating the very first four-wheeled automobile. Almost entirely simultaneously, just 60 miles away in Mannheim, Carl Benz (a meticulous, intensely struggling engineer heavily supported financially by his daring wife, Bertha Benz) patented his 'Motorwagen', an integrated, three-wheeled vehicle that was arguably the world's very first true automobile designed entirely from scratch, rather than a modified carriage. For nearly forty years, Daimler Motoren Gesellschaft (DMG) and Benz & Cie operated as competitors. The famous 'Mercedes' name was adopted by DMG in 1902 (named after the daughter of a wealthy Austrian diplomat and racing enthusiast, Emil Jellinek, who bought fleets of their cars). The defining, corporate explosion occurred in 1926. Utterly devastated by the hyperinflation and total economic collapse of post-WWI Germany, the two rival companies were forced to execute a desperate, historic mega-merger to survive, forming Daimler-Benz AG. By combining Carl Benz's rigorous engineering foundation with Daimler's high-performance legacy, they established the dominant bedrock of the global luxury automotive industry. Karl Benz was born in 1844.
Gottlieb Daimler
Gottlieb Daimler co-founded Daimler-Motoren-Gesellschaft and helped establish the engine lineage that later became part of Mercedes-Benz. Working with Wilhelm Maybach, he developed high-speed internal combustion engines that could be adapted to cars, boats, and airships. Daimler died in 1900, long before the 1926 merger with Benz & Cie., but his company's vehicles became closely associated with performance, racing, and premium engineering, especially after Emil Jellinek promoted Daimler cars under the Mercedes name. Daimler's lasting influence on Mercedes-Benz is the belief that propulsion technology can define brand identity. The company still draws from that heritage when it markets AMG performance, electric drive innovation, and advanced vehicle systems. If Benz represents the practical birth of the automobile, Daimler represents the ambition to make propulsion faster, more versatile, and more desirable. Gottlieb Daimler was born in 1834 in Schorndorf. Education: University of Stuttgart.
Key Milestones
Benz Patent-Motorwagen
Karl Benz patented the Benz Patent-Motorwagen in 1886, creating the mechanical foundation for the future Mercedes-Benz story. The vehicle mattered because it was designed as a complete gasoline-powered automobile rather than a modified carriage. Bertha Benz's later long-distance drive helped prove that the machine could function in real-world travel. The consequence was a new category of personal mobility that later became an industry.
Source: en.wikipedia.orgDaimler-Benz AG formed
In 1926, Daimler-Motoren-Gesellschaft and Benz & Cie. Merged to form Daimler-Benz AG, with administrative headquarters in Stuttgart. The merger mattered because Germany's early auto industry needed stronger capital, manufacturing scale, and an unified premium brand. It created the corporate platform behind the modern Mercedes-Benz identity.
Source: en.wikipedia.org300 SL Gullwing launch
The 1954 Mercedes-Benz 300SL Gullwing turned racing technology into one of the most recognizable road cars in automotive history. Its design, fuel injection, doors, and scarcity gave Mercedes-Benz a global halo product after World War II. The car mattered because it fused engineering credibility with luxury desire. Its consequence was a long-lasting performance aura that later helped support AMG, flagship models, and collectible brand value.
Source: en.wikipedia.orgDaimlerChrysler merger
Daimler-Benz and Chrysler combined in 1998 to create DaimlerChrysler, a transatlantic auto group built on the promise of premium engineering and North American scale. The deal mattered because it later exposed how difficult it was to merge Mercedes-Benz's premium culture with Chrysler's mass-market business. Its failure shaped later decisions to narrow the company around cars, vans, software and financial services.
Source: en.wikipedia.orgDieter Zetsche
Dieter Zetsche led Daimler during the period when the company exited Chrysler and repaired focus around Mercedes-Benz passenger cars, vans, China, and product execution. His tenure mattered because it helped move the company away from the failed transatlantic merger and back toward a cleaner premium-vehicle strategy. The consequence was a stronger base for the later electrification and software transition.
Source: en.wikipedia.orgChrysler divestiture refocused the company
The 2007 Chrysler divestiture was a turning point because it ended the most damaging expansion experiment in modern Mercedes-Benz history. Selling Chrysler freed management attention and capital from a business that did not fit the premium Mercedes-Benz operating model. The decision mattered because it restored strategic clarity around luxury cars, vans, engineering, and brand control. The consequence was a more disciplined company with a clearer path toward premium positioning.
Source: en.wikipedia.orgMercedes-Benz launched the EQ brand
Mercedes-Benz launched the EQ brand in 2016 to create a dedicated identity for electric vehicles and sustainable mobility. The launch mattered because Tesla, emissions regulation, and changing customer expectations were forcing premium automakers to respond with more than compliance vehicles. EQ signaled a broad investment in batteries, charging, platforms, and software. The consequence was a major capital commitment that remains central to the company's margin and product-cycle challenge.
Source: en.wikipedia.orgOla Källenius
Ola Källenius became CEO in 2019 and pushed Mercedes-Benz toward value over volume, electrification, cost discipline, and software control. His leadership mattered because the company needed to fund a technology transition while protecting the premium economics of AMG, Maybach, G-Class, S-Class, and high-spec SUVs. He also oversaw the Daimler Truck spin-off and backed MB.OS as a proprietary software platform.
Source: en.wikipedia.orgDaimler Truck Spin-Off
The 2021 spin-off of Daimler Truck separated heavy commercial vehicles from the Mercedes-Benz passenger-car, van, and mobility business. Shareholders also approved renaming Daimler AG as Mercedes-Benz Group AG effective February 1, 2022. The move mattered because trucks and luxury cars have different customers, capital cycles, emissions challenges, and investor expectations.
Source: en.wikipedia.orgYASA Acquisition
Mercedes-Benz acquired YASA in 2021 to gain axial-flux electric motor technology for future high-performance EVs. The acquisition mattered because electric vehicles risk mechanical sameness if premium brands cannot differentiate the powertrain experience. YASA's compact, high-power motor technology supports the future AMG electric architecture and gives Mercedes-Benz proprietary engineering depth. The consequence will be measured by whether the technology scales profitably into production vehicles.
Source: en.wikipedia.org~$173B (€153.2B) revenue peak
Revenue reached ~$173 billion (€153.2 billion) in 2023, the high point after the Daimler Truck spin-off, helped by premium pricing and supply recovery before the pressures of 2024 and 2025.
Source: group.mercedes-benz.com~$165B (€145.6B) revenue
In 2024, revenue declined to ~$165 billion (€145.6 billion), showing pressure from demand normalisation, weaker China sales and transition costs.
Source: group.mercedes-benz.comRevenue falls to ~$149B (€132.2B)
Mercedes-Benz reported ~$149B (€132.2B) in FY2025 revenue, ~$9.27B (€8.2B) adjusted EBIT, about $5.99B (€5.3B) net profit, ~$6.1B (€5.4B) industrial free cash flow and 164,120 employees.
Source: group.mercedes-benz.comAthlon sold to Arval
Mercedes-Benz completed the sale of its Athlon fleet-leasing business to Arval, BNP Paribas' leasing arm, on 31 July 2026, days after Q2 results showed revenue of ~$36.3 billion (€32.1 billion) and a 30% drop in China car sales.
Source: group.bnpparibasMajor Acquisitions
Chrysler Corporation
1998Mercedes-Benz pursued the acquisition of Chrysler Corporation to create a global automotive group with stronger positions in Europe and North America. The deal was intended to combine German premium engineering with American manufacturing scale, dealer reach, and mass-market volume. Leadership believed the combined company could compete more effectively with the world's largest automakers.
AMG Motorenbau / Mercedes-AMG
1999DaimlerChrysler took a controlling interest in AMG in 1999 and later moved to full ownership, bringing the independent performance engineering firm deeper inside the Mercedes-Benz product system. The strategic purpose was to control high-performance variants, protect pricing power, and turn AMG from an outside tuner into an official premium sub-brand.
Athlon Car Lease International
2016Daimler Financial Services acquired Athlon from De Lage Landen, a Rabobank subsidiary, to expand in European fleet management and multi-brand leasing. The deal strengthened the company's ability to serve corporate mobility customers beyond traditional vehicle financing.
YASA
2021Mercedes-Benz acquired YASA, a UK-based axial-flux electric motor specialist, to secure high-performance electric drive technology for future AMG and electric platforms. The acquisition targeted power density, efficiency, and differentiation in a market where many EV powertrains risk feeling technically similar.
Keep researching Mercedes-Benz
Mercedes-Benz Company History FAQ
What are the most important historical milestones in Mercedes-Benz's history since 1886?
Key historical milestones include Karl Benz patenting the motorcar in 1886, Bertha Benz's historic 1888 road trip, the 1901 Mercedes 35 hp debut, the Daimler-Benz merger in 1926, the 1954 300 SL Gullwing launch, introducing crumple zones in 1959 and ABS in 1978, acquiring AMG in 1999, the 1998 to 2007 Chrysler era, opening Factory 56 in 2020, spinning off Daimler Truck in 2021, and launching Drive Pilot Level 3 autonomy.
How did the well-known 'Silver Arrows' racing cars originate in 1934?
The 'Silver Arrows' (Silberpfeile) legend began at the Nürburgring in 1934 with the Mercedes-Benz W25 race car. To meet the strict 750 kg maximum weight limit, team manager Alfred Neubauer instructed mechanics to scrape off the car's white lead paint down to the bare polished silver aluminum bodywork overnight, winning the race and creating a motorsport legend.
How did Mercedes-Benz engineer Bela Barenyi invent modern vehicle passive safety?
In 1952, visionary Mercedes-Benz engineer Béla Barényi patented the 'Crumple Zone', a rigid passenger safety cell flanked by deformable front and rear energy-absorbing zones. First implemented in the 1959 Mercedes-Benz W111 'Fintail' sedan, Barényi's concept became the universal structural safety standard for all modern automobiles.
How did Mercedes-Benz handle the 1997 'Elk Test' rollover crisis with the original A-Class?
In 1997, a Swedish automotive journalist rolled the newly launched compact Mercedes-Benz A-Class during an evasive 'Elk Test' maneuver. Mercedes-Benz responded with notable engineering integrity: recalling all vehicles, fitting standard Electronic Stability Program (ESP) across the entire fleet at large corporate expense, and democratizing stability control worldwide.
What was the significance of the Mercedes-Benz 600 'Grosser' limousine in 1963?
Launched in 1963, the Mercedes-Benz 600 (W100) was the supreme state limousine of the 20th century, favored by monarchs, popes, heads of state, and celebrities. Engineered without regard to cost, it featured a 6.3-liter M100 V8 and a complex 150-bar central hydraulic system silently powering windows, seats, sunroofs, and automatic closing doors.
How did the Mercedes-Benz Museum in Stuttgart become an architectural landmark?
Opened in 2006 adjacent to the main plant in Stuttgart-Untertürkheim, the UNStudio-designed Mercedes-Benz Museum features a notable double-helix architecture. Housing over 160 historic vehicles and 1,500 exhibits, it chronologically showcases the history of the automobile from 1886 to modern concepts.
How did Mercedes-Benz dominate Formula 1 racing in the turbo-hybrid V6 era?
From 2014 to 2021, the Mercedes-AMG PETRONAS F1 Team achieved the most dominant run in motorsport history, winning 8 consecutive FIA Formula 1 World Constructors' Championships and 7 Drivers' Championships (with Lewis Hamilton and Nico Rosberg) through major hybrid engine thermodynamics.
What was the historic sale of the 1955 Mercedes-Benz 300 SLR 'Uhlenhaut Coupé' in 2022?
In May 2022, Mercedes-Benz sold one of its two original 1955 300 SLR Uhlenhaut Coupé prototypes from its company museum collection at a private auction for a record €135 million ($143 million), making it the most expensive car ever sold in human history, using proceeds to establish the global 'beVisioneers: The Mercedes-Benz Fellowship' youth sustainability fund.
How was Mercedes-Benz originally founded?
Mercedes-Benz represents the very birth of the automobile. In January 1886, Karl Benz patented the Benz Patent-Motorwagen in Mannheim, Germany, universally recognized as the world's first production car. In August 1888, his wife Bertha Benz took the car on a historic 106 km cross-country journey without his knowledge, proving its commercial viability. Concurrently, Gottlieb Daimler and Wilhelm Maybach perfected the high-speed petrol engine in Bad Cannstatt. In 1926, the two pioneering firms merged to form Daimler-Benz AG.
Why is it called Mercedes-Benz and what does the star symbolize?
The name "Mercedes" came from Emil Jellinek, an influential Austro-Hungarian diplomat and auto dealer who raced Daimler cars named after his daughter, Mercedes Jellinek. Jellinek commissioned the revolutionary 1901 Mercedes 35 hp. Following the 1926 merger with Benz & Cie., the combined vehicles were branded "Mercedes-Benz." The famous three-pointed star logo, designed by Gottlieb Daimler's sons, symbolizes Daimler's universal ambition for motorized mobility across land, sea, and air.
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