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Mercedes-Benz between brand tradition and strategic change
100 years after its founding, Mercedes-Benz is one of the world's best-known automobile brands. According to the company, the brand was created on June 28 and 29, 1926 with the merger of the companies founded by Carl Benz and Gottlieb Daimler into Daimler-Benz AG. A few weeks later, on August 21, 1926, the company registered the now-iconic emblem with a star, a laurel wreath, and the inscriptions Mercedes and Benz.
Today the brand presence extends far beyond the traditional automotive business. In addition to vehicles, the name stands for motorsport, sports arenas, as well as new licensing projects in the real estate sector.
New business fields around the brand
According to the company, luxury residential complexes are being developed in Dubai and Miami together with partners. These brand licensing projects are a strategically relevant business field and are intended to create additional touchpoints with the brand.
While Mercedes-Benz continues to focus on the luxury segment in real estate projects, the strategy in the vehicle business was recently adjusted. The former focus on particularly high-margin luxury models plays a smaller role in the current corporate strategy.
Strategy shift after difficult business years
According to automotive expert Helena Wisbert, the concentration on particularly profitable vehicle models has not developed economically as expected. Mercedes-Benz, despite its premium position, remains a high-volume manufacturer and not a boutique manufacturer.
The manufacturer is also under economic pressure. In 2025, profit fell from 10.4 billion euros to 5.3 billion euros. Among other causes, the company cited tariffs, negative exchange-rate effects, and intense competition on the Chinese market. Business figures were already down in 2024. In response, a savings program was announced. At the same time, the manufacturer announced numerous new models and spoke of the largest technology and product offensive in the company's history.
Strong Brand as a Competitive Advantage
According to industry experts, Mercedes-Benz continues to hold a strong market position. The company is regarded as competitive, especially in safety, reliability, software development and electromobility. The announced new model launches could further strengthen this position.
Marketing experts attribute the brand's long-term success primarily to its high recognition, a consistent brand image, and the logo that has remained virtually unchanged for decades. The Mercedes star is one of the world's best-known trademarks.
In addition to the brand anniversary, Mercedes-Benz this year also marks 140 years of innovation. The background is Carl Benz's patent for a vehicle powered by a gas engine from 1886. (Source: dpa)
Content automatically translated.
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