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The History of Mercedes-Benz

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Mercedes-Benz is a German manufacturer of luxury automobiles, buses, coaches, and trucks. It is currently a division of the parent company, Daimler AG (formerly DaimlerChrysler AG), after previously being owned by Daimler-Benz.

Mercedes-Benz has its origins in Karl Benz's creation of the first petrol-powered car, the Benz Patent Motorwagen, patended in January 1886, and by Gottlieb Daimler and engineer Wilhelm Maybach's conversion of a stagecoach by the addition of a petrol engine later that year.

The Mercedes automobile was first marketed in 1901 by Daimler Motoren Gesellschaft. The first Mercedes-Benz brand name vehicles were produced in 1926, following the merger of Karl Benz's and Gottlieb Daimler's companies into the Daimler-Benz company. Mercedes-Benz has introduced many technological and safety innovations that have become common in other vehicles several years later.

The newly created automobile company, Mercedes-Benz also needed a new image symbolising its enterprise union. The iconic three-pointed star is pervasive and unmistakably recognised around the world. But its design has evolved in many ways since the two companies merged in 1926. One early logo was trademarked in the United States on Friday, 16 August 1929. An application was filed for Mercedes-Benz by Daimler-Benz Aktiengesellschaft of Berlin, Germany with the USPTO. Their application was filed in the primary class of non-metallic building materials and provide a description that included, "automotive vehicles, as follows: passenger cars and freight trucks; parts of and accessories to said vehicles…"

The design of the Mercedes-Benz signature logo was described by the USPTO with three aspects, 1) Stars with three points (Celestial bodies, natural phenomena, Geographical maps — Stars, comets), 2) Garlands, wreaths, bands, borders or frames made of plants (Plants — Decorations made of plants), and 3) Circular or elliptical seals (Heraldry, flags, crowns, crosses, arrows, and symbols — Seals).

Daimler-Benz elaborates on their use of the new logo and its representations in their 1928 application. Based upon their description, it appears they combined design elements from each automobile company to create a new logo reflecting each company's legacy. They stated that the trademark was applied to goods in their business since October 1926 with the trademark, "having been used in the business of the applicant's predecessors and in the business of applicant, continuously since the following dates. The word Mercedes since December 1900; the word Benz since July 1896; the representation of a three-pointed star since 27 June 1909, the representation of a wreath of laurel since September, 1909." In their U.S. trademark application, Daimler-Benz stated that their trademark was registered in Germany on 28 August 1928 with an application date of 21 August 1926.

U.S. trademark registration was granted on 28 July 1931. Its current status is registered and renewed with the latest owner listed as Daimler AG of Stuttgart, Germany. Mercedes-Benz is currently owned by Daimler AG in Germany.

Business alliances

Studebaker-Packard

In 1958, Mercedes-Benz entered into a distribution agreement with the Studebaker-Packard Corporation of South Bend, Indiana (USA), makers of Studebaker and Packard brand automobiles. Under the deal, Studebaker would allow Mercedes-Benz access to its dealer network in the U.S., handle shipments of vehicles to the dealers, and in return, receive compensation for each car sold. Studebaker also was permitted to use the German automaker's name in its advertisements, which stressed Studebaker's quality over quantity.

When Studebaker entered into informal discussions with Franco-American automaker Facel Vega about offering Facel Vega Excellence model in the United States, Mercedes-Benz objected to the proposal. Studebaker, which needed Mercedes-Benz distribution payments to help stem heavy losses, dropped further action on the plan.

Mercedes-Benz maintained an office within the Studebaker works in South Bend from 1958 to 1963, when Studebaker's U.S. operations ceased. Many U.S Studebaker dealers converted to Mercedes-Benz dealerships at that time. When Studebaker closed its Canadian operation and left the automobile business in 1966, remaining Studebaker dealers had the option to convert their dealerships to Mercedes-Benz dealership agreements.

Subsidiaries

Mercedes-Benz AMG became a majority owned division of Mercedes-Benz in 1998. The company was integrated into DaimlerChrysler in 1999, and became Mercedes-Benz AMG beginning on 1 January 1999.

Quality rankings

Since its inception, Mercedes-Benz had maintained a reputation for its quality and durability. Objective measures looking at passenger vehicles - such as J.D. Power surveys, demonstrated a downturn in reputation in this criteria in the late 1990s and early 2000s. By mid-2005, Mercedes temporarily returned to the industry average for initial quality, a measure of problems after the first 90 days of ownership, according to J.D. Power. In J.D. Power's Initial Quality Study for the first quarter of 2007, Mercedes showed dramatic improvement by climbing from 25th to 5th place, surpassing quality leader Toyota, and earning several awards for its models. For 2008, Mercedes-Benz's initial quality rating improved by yet another mark, now in fourth place. On top of this accolade, it also received the Platinum Plant Quality Award for its Mercedes’ Sindelfingen, Germany assembly plant. As of 2009, Consumer Reports of the United States has changed their reliability ratings for several Mercedes-Benz vehicles to "average", and are recommending the E-Class and the S-Class.

In the United States, due to an inability to meet federal corporate average fuel economy regulations, Mercedes-Benz was fined a record US$30.66 million in 2009. Certain Mercedes-Benz cars including the S550, C63 AMG, and SLK55 AMG sold in the United States also face an additional gas guzzler tax.

Corporate average fuel economy

In 2008, Mercedes had the worst CO2 average of all major European manufacturers, ranking 14th out of 14 manufacturers. Mercedes was also the worst manufacturer in 2007 and 2006 in terms of average CO2 levels, with 181 g and 188 g of CO2 emitted per km, respectively.