The history of Mercedes-Benz traces to the very origins of the automobile. Karl Benz received a patent for his Benz Patent-Motorwagen in January 1886, widely regarded as the world's first true automobile powered by a gasoline engine. Gottlieb Daimler and Wilhelm Maybach independently developed their own gasoline engine and vehicle in 1885 and 1886.
Benz and Cie., Karl Benz's company, and Daimler Motoren Gesellschaft, founded by Gottlieb Daimler, operated as separate companies for decades. The Mercedes name was first used in 1901, when Emil Jellinek, an Austro-Hungarian diplomat and automobile enthusiast, commissioned a new racing car from Daimler and named it after his daughter Mercedes. The Mercedes brand became synonymous with performance and quality.
Daimler-Benz AG was formed in 1926 through the merger of Benz and Cie. and Daimler Motoren Gesellschaft. The merged company produced vehicles under the Mercedes-Benz brand, combining the three-pointed star of Daimler with the laurel wreath of Benz.
During World War II, Daimler-Benz produced aircraft engines and military vehicles using forced labor, a period that remains a significant part of the company's historical record. The company rebuilt its manufacturing operations after the war and resumed civilian vehicle production.
Mercedes-Benz established its reputation for engineering excellence in the postwar decades through innovations in safety technology, including the crumple zone (1959), anti-lock braking system (ABS, 1978), and airbags (1981). The company's S-Class sedan became the benchmark for luxury automotive technology.
In 1998, Daimler-Benz merged with Chrysler Corporation to form DaimlerChrysler, one of the largest automotive mergers in history. The merger was intended to create a global automotive powerhouse but was widely regarded as unsuccessful. Cultural and strategic differences between the German and American operations proved difficult to reconcile, and Chrysler was sold to Cerberus Capital Management in 2007 for approximately $7.4 billion, a fraction of its acquisition price.
Following the Chrysler divestiture, Daimler AG refocused on its core Mercedes-Benz and commercial vehicle businesses. The company acquired a significant stake in Aston Martin in 2013 and expanded its partnership with Renault-Nissan. In 2020, Daimler AG announced the plan to split into two independent companies, which was completed in February 2022.
For full-year 2025, Mercedes-Benz Group reported revenue of approximately €132.2 billion and adjusted EBIT of approximately €8.2 billion, both declining from 2024 levels, reflecting challenging market conditions particularly in China and the cost of the electrification transition.