The history of Mercedes-Benz: A Century of Luxury and Innovation

Mercedes-Benz is the world’s oldest car manufacturer and one of the most influential names in automotive history.

Though it’s a household name today, the brand we know didn’t begin as one company.

It began with 2 inventors from southwest Germany, Carl Benz and Gottlieb Daimler, who lived more than 100 km apart and worked independently toward the same goal: creating mobility powered by combustion engines.

Carl Benz, regarded as the father of the modern automobile, built and patented the first petrol-driven car, a three-wheeled motor vehicle. Meanwhile, Gottlieb Daimler, with help from Wilhelm Maybach, created the first four-wheeled automobile, essentially a motorized carriage.

These early machines proved their worth even when fuel stations and paved roads didn’t exist. Their usefulness became undeniable in 1888 when Bertha Benz, Carl’s wife, made history by taking the first long-distance trip ever in an automobile.

Without telling her husband, she drove 104 km from Mannheim to Pforzheim to visit her mother. Along the way, she even improvised the first brake pads using leather, an act that forever changed public perception of automobiles.

Her bold feat helped prove that automobiles weren’t just experiments; they were the future of transportation.

Today, her route is still celebrated in Germany every 2 years as the Bertha Benz Memorial Route, where vintage cars retrace the historic route she drove.

Table of content

From rivals to Daimler-Benz (1926)

Vintage Mercedes car

After World War I, Germany faced an intense economic crisis that forced many industries, including automakers, to adapt creatively. For example, BMW survived by producing pots, pans, and bicycles.

Daimler Motors (DMG) also diversified, manufacturing furniture, bicycles, and typewriters to stay afloat.

As the economy worsened, DMG and Benz & Cie. began negotiating ways to survive together.

In 1924, they signed an Agreement of Mutual Interest, allowing them to remain separate brands but collaborate on design, production, sales, and advertising. The partnership helped both companies stay competitive by pooling resources.

Two years later, in 1926, the collaboration became official. The two firms merged to form Daimler-Benz AG, combining their technologies, patents, and dealer networks into a single powerhouse with global reach.

The name Mercedes Benz was born: Mercedes 35 hp

The name “Mercedes” comes from one of Daimler’s early car models, which was named after Mercedes Jellinek, the daughter of a wealthy businessman and car dealer, Emil Jellinek.

Jellinek discovered Daimler in 1896 after seeing one of its ads in a magazine. He bought a car, loved it, and decided to start selling the brand in France.

But despite the cars being the best in its time and winning all the races it was entered in, Jellinek was not satisfied. He wanted faster, lighter, race-ready cars that reflected his vision of performance.

He made Daimler an offer: he would buy a full shipment worth 550,000 goldmarks if Daimler and engineer Wilhelm Maybach built a car exactly to his specifications.

The result was the Mercedes 35 hp, a revolutionary vehicle that changed automotive design forever.

It was powerful, lightweight, and elegant, far ahead of its time. The car dominated races and impressed both engineers and enthusiasts.

Its success was so overwhelming that Daimler decided to use “Mercedes” as the brand name for all future models.

When Daimler and Benz merged later in 1926, the combined company proudly carried the name Mercedes-Benz, a tribute to that breakthrough car and the collaboration that made it possible.

Mercedes Benz in World war 2

Before World War II, Mercedes-Benz had already established itself as a symbol of power and prestige.

Its grand Mercedes-Benz 770 was the luxury vehicle of choice for top government officials across Germany, Italy, and Japan, including Adolf Hitler himself. Reports suggest the company even offered him special dealer discounts.

When the war began, Mercedes-Benz factories shifted from making luxury cars to producing military vehicles and aircraft engines for the Nazi regime.

Like many German automobile companies of the time, the company also used forced labor, more than 60,000 prisoners of war were made to work in its factories, a dark chapter that Mercedes has since acknowledged.

After the war ended, much of Germany’s industry lay in ruins. Yet Mercedes-Benz managed to rebuild quickly. Through persistence and innovation, it restored production and reclaimed its place as one of the world’s top car manufacturers.

By the 1950s and 60s, the brand had earned a reputation for safety, quality, and solid engineering.

In the late 70s, 2 former Mercedes engineers created a small engineering firm that tuned Mercedes cars to become higher performance cars and race in motorsport 

Daimler-Benz then bought a controlling stake in the company and made it an in-house performance division of Mercedes.

Daimler-Benz acquires Maybach

Wilhelm Maybach, who once worked alongside Gottlieb Daimler, left the company in 1907 to start his own venture with his son, founding the Maybach Engine Manufacturing Company. Their goal was to build engines, and later, design full luxury automobiles that embodied craftsmanship and prestige.

Wilhelm Maybach, who once worked alongside Gottlieb Daimler, left the company in 1907 to start his own venture with his son, founding the Maybach Engine Manufacturing Company. Their goal was to build engines, and later, design full luxury automobiles that embodied craftsmanship and prestige.

Decades later, after the Daimler-Benz merger, the company decided to bring Maybach under its wing. The plan was simple: create an ultra-luxury division that could compete directly with Rolls-Royce and Bentley.

But things didn’t go as planned. The reborn Maybach cars were expensive and beautifully made, but they lacked the aura of exclusivity that Rolls-Royce had mastered as they were assembled in the same plants as the normal Mercedes sedans.

Sales were slow, and by 2012, production stopped altogether.

But, just two years later, in 2014, it relaunched Maybach as a sub-brand under the Mercedes-Benz umbrella. This time, instead of standing alone, it became part of the flagship S-Class lineup, combining handcrafted luxury with Mercedes engineering.

The result was a success. The first new model, the Mercedes-Maybach S600, Mercedes’s flagship car. It marked Maybach’s true return as Mercedes-Benz’s crown jewel in the world of luxury motoring.

Iconic Mercedes Benz cars that changed the game

Mercedes-Benz 300SL Gullwing

Mercedes-Benz 300SL Gullwing is one of the most recognizable cars ever made.

The 300SL is one of the most recognizable cars ever made. Born from Mercedes’ racing heritage, it was introduced in 1954 after U.S. importer Max Hoffman convinced the company to build a road legal version of its successful race car for the American market.

The gamble paid off. The 300SL became an instant sensation, sleek, fast, and unlike anything on the road.

It was also the first fuel-injected production car and the fastest of its era, setting new standards for performance and engineering precision.

Its most famous feature? The gullwing doors that opened upward was a marvel at the time, unlike anything in the market.

They weren’t just stylish; they were a solution to the car’s unique tubular frame design.

Mercedes-Benz 260 D: The World’s First Diesel Passenger Car

In 1936, Mercedes-Benz introduced the 260 D, the world’s first diesel-powered passenger car.

It featured a 2.6-litre, four-cylinder engine that was more fuel-efficient and durable than its petrol counterparts, a big deal at a time when efficiency meant everything.

The 260 D laid the groundwork for Mercedes’ long-standing reputation for reliability and engineering strength.

After World War II, it was succeeded by the Mercedes-Benz W136, another diesel model that went on to become one of the most popular cars of the 1940s and 50s.

From their use as taxis to long-distance tourers, these diesel models became workhorses across Europe and beyond.

S-Class

The S-Class has always been the ultimate symbol of luxury and innovation. Since its debut in 1972, each generation has introduced new technology that eventually became standard across the entire car industry.

Features we see everyday today, anti-lock brakes, airbags, adaptive cruise control, active suspension, and driver-assistance systems, all made their first appearance in an S-Class. Every new model set a higher bar for what a luxury car could be.

Aside from its technology, it also carried presence. For decades, it’s been the car of choice for presidents, CEOs, and celebrities, people who wanted comfort, safety, and quiet authority in equal measure.

Owning or riding in an S-Class has always said one thing: you’ve arrived.

C-Class: Bestseller

When Mercedes introduced the C-Class in 1993, it aimed to bring Mercedes luxury to a wider audience.

It was smaller and more affordable than the S-Class but still carried the same luxury DNA.

The early C200 offered a smooth and refined driving experience that made it an instant hit.

Later, high-performance versions like the C63 AMG with bigger engines and aggressive tuning, turned the C-Class into something more thrilling, a compact sedan that could hold its own on the racetrack.

Over the years, the C-Class became Mercedes-Benz’s most successful model worldwide, especially in markets like South Africa where its blend of style, reliability, and everyday practicality made it a favorite.

The best Mercedes Benz SUVs ever produced

G-Wagon: from military off-roader to luxury icon

The G-Wagon, an SUV that went from a military off-roader to luxury icon is Mercedes Benz most iconic SUVs

The G-Class, or G-Wagon as it’s commonly called, started life far from the red carpets.

Originally designed in the 1970s at the request of the Shah of Iran, it was built as a rugged military vehicle meant to handle the toughest terrain on earth.

It went through years of intense testing, on German coalfields, the Sahara Desert and the Arctic Circle.

The first civilian version launched in 1979. Its boxy shape, strong frame, and four-wheel-drive power made it nearly unstoppable off-road.

The time spent in testing and producing it paid off because it is one of the most symbolic automobiles ever created.

And today it’s a luxury statement, with the AMG G63 combining its luxury handcrafted interior with a massive V8 engine to create a masterpiece.

Mercedes-Benz GLE: Taking the luxury SUV segment by storm

The Mercedes-Benz GLE sits right at the heart of the brand’s modern SUV lineup.

The Mercedes-Benz GLE sits right at the heart of the brand’s modern SUV lineup. Originally launched in 1997 as the ML-Class, it was one of the first luxury SUVs to blend rugged capability with genuine comfort.

In 2015, it was renamed the GLE as part of Mercedes’ new global naming strategy.

The GLE was designed to take on strong rivals like the BMW X5 and Audi Q7, and it did more than hold its own.

It introduced features like AIRMATIC suspension, MBUX infotainment, and 4MATIC all-wheel drive, combining cutting-edge technology with a smooth, confident driving experience.

The latest GLE (W167) pushes the brand even further, embracing hybrid and plug-in hybrid options that show Mercedes’ growing commitment to sustainability.

It’s a car built for families who want space and safety without giving up elegance and performance, a modern SUV that carries the three-pointed star with pride.

Mercedes-Benz in South Africa

Mercedes-Benz’s roots in South Africa go back more than a century. In 1896, the country imported its very first car, a Benz Velo, marking the start of a long and proud relationship.

By 1954, Mercedes had opened its first local branch, an assembly plant that paved the way for decades of growth.

In 1973, South Africa made history when Mercedes produced its first engine outside Germany, a major milestone for both the company and the local automotive industry.

Today, Mercedes-Benz continues to play a vital role in the country’s economy. It employs nearly 3,000 South Africans and contributes significantly to both the industrial sector and popular culture.

Want more stories like this?

Share

Charles Aruya

Charles Aruya

Charles leads Tarlen, a carsharing marketplace built to take the hassle out of renting cars. By connecting travelers with car owners and small rental agencies, Tarlen makes travel fun again.
Scroll to Top