Back in the 1880s, Gottlieb Daimler and Karl Benz each invented a high-speed engine — even though they had never met. Daimler worked with his business partner, Wilhelm Maybach, to design what would eventually become a modern gasoline engine in 1885. Around the same time, Benz began the development of one of the first automobiles by using bicycle technology and a four-stroke engine.
A few years later, Benz introduced a four-wheeler and Daimler struck a deal with William Steinway to produce horseless carriages in the US.
It was during this time that Daimler established DMG and Benz founded Benz & Cie. In 1900, DMG introduced a car — the ‘Mercedes’. This was a stepping stone in the history of Mercedes-Benz, but unfortunately, the war soon started in Germany. With little or no fuel for cars and high taxes, it made automobile production disastrous.
The Creation of Mercedes-Benz
The conditions of war forced DMG and Benz to sign an agreement of mutual interest, but they could maintain their individual identities. However, in 1926, the companies merged to form the Daimler-Benz company. A year later, the new company christened their joint automobile project the Mercedes-Benz.
The merger was considered a success, and production of Mercedes-Benz cars rose to 7,000 vehicles in 1927. In the 30s, their success would only continue with the debut of the Mercedes-Benz W15 — their largest and most prestigious car yet. This allowed them to become one of the leading brands in the automotive industry. As a result, Mercedes-Benz was created as a separate division of the Daimler-Benz AG.