Mercedes Benz is a company that has witnessed both the first and the second world wars. The company was built on the effort and contributions of three key individuals, Gottlieb Daimler, Carl Benz, and Wilhelm Maybach. All these three people lie around the same place in the timeline of the company, which is, the origin. The company itself was established and founded in 1926. However, there are several events which lead to the establishment of the company.
The very first origin of the company was witnessed in years 1834, and 1846 with the birth of Gottlieb Daimler, and Wilhelm Maybach respectively. According to Mercedes-Benz corporate history, both Daimler and Maybach were involved in several technical activities and jobs related to it in their early lives. For Daimler, this includes training as a gunsmith, attending a polytechnic school, working as a draftsman, and finally, being appointed as a workshop inspector in a machine tool factory in Reutlingen, in 1865. (Corporate History). Further, in 1872, he got appointed as a technical director in a gas engine manufacturing company named “Deutz Gasmotorenfabrik.” And while working here he got to know about “Otto’s four stroke engine.” Soon after however, in 1882, due to disputes with the managing director, he left the company and continued working on a petrol driven four-stroke engine, in his greenhouse! (Corporate History) In 1884, while working with Wilhelm Maybach, they developed a light weight, high speed, combustion engine, known as the “grandfather clock” This engine is marked as the vision for the first automobile. (Corporate History)
During the Nazi Era:
According to its company history on the Daimler-Benz AG website, during the Nazi Era, Daimler-Benz AG aided the Nazi power greatly by providing war resources and supplies, including automotive, engines, armaments, etc. During the war, the most important line of business for them, was truck production. Passenger car manufacturing, on the other hand was limited to only military requirement since the beginning of the war, which also came to an end eventually in the year 1942. (Daimler-Benz in the Nazi Era) The company earned a major part of its revenues from armament production. Its main focus eventually was on manufacture and assembly of military components for the army, navy, and air-force. (Daimler-Benz in the Nazi Era) Due to the war, production of spare parts and repair of military vehicles were also a major responsibility levied upon the company. Under these circumstances, the company eventually experienced labor scarcity. In order to overcome this weakness, the company started hiring women in order to meet the demand of production. (Daimler-Benz in the Nazi Era) The company was even bound to use forced labor which included war prisoners, abducted civilians, concentration camp detainees, who were housed close to the factories under terrible conditions. (Daimler-Benz in the Nazi Era) By the end of 1944, about 50% of the 63,610 Daimler-Benz AG employees were civilian forced laborers, war prisoners, or concentration camp detainees. (Daimler-Benz in the Nazi Era)
After the end of the war, in 1945, the company took a major hit and was adversely impacted by several events due to which the company majorly suffered. According to Daimler-Benz AG, company history, “under the Potsdam Agreement all German assets abroad were confiscated and used for the payment of reparations. Daimler-Benz lost all foreign subsidiaries, affiliates and branches as well as all assets in the Soviet-occupied areas.” (Reconstruction) The company lost all of its foreign subsidiaries, affiliates, branches, and as well as its soviet-occupied areas. In other words, the international relations of the company were absolutely shattered. However, recovery was witnessed in 1947, when production resumed at all plants. Daimler-Benz AG company history, states that, “despite the chaotic financial situations existing until currency reform om 20 June 1948, the company balance sheet for 1948-49 already showed profit.” (Reconstruction) In the year 1951, Daimler-Benz AG marked the completion of the reconstruction of the company. In the years between 1949-1960, Daimler-Benz AG regained the position it enjoyed before World War Two. (Economic Miracle and Return to the World Market) More importance was given to exports during this time period. As far as reconstruction is concerned, Daimler-Benz AG returned stronger than ever in the market. According to Daimler-Benz AG Company History, The company cracked the billion mark in terms of turnover and broke its existing sales record. (Economic Miracle and Return to the World Market). Further, it held monopoly manufacturing diesel engines and extensive production of commercial vehicles, including light-vans to heavy duty trucks. According to Daimler-Benz corporate history, “the high sales figures for all the cars of the Mercedes-Benz brand became a symbol of the German economic miracle.” (Economic Miracle and Return to the World Market) The company also relied on motorsport events during this period, such as
acknowledged its ties with the Nazi regime, and in order to recover in the market, got involved in German Industry Foundation’s initiative, “Remembrance, Responsibility, and Future” whose work included provision of humanitarian aid for former forced laborers. (Company History)
Future:
According to Daimler AG Corporate Strategy, the company is currently focusing on the future with the perspectives of two elements, Electric, and autonomous. For the future of the company, Daimler-Benz AG has adopted what they are calling, the 5C strategy, which includes five components, namely, CORE, CASE, CULTURE, COMPANY, and CUSTOMER. (Our Strategy)
The first component, Core, refers to strengthening the global core business of the company. (Our Strategy) The company is stressing on