Introduction
Germany is best known for its production of the solid machine. The world market has learned to appreciate and acknowledge most of the German machines for their durability and the ability to sustain the shelf life in the market. Carl Benz and Gottlieb Daimler being the fathers of Mercedes, brought to life the Mercedes Benz automobile, a gasoline automobile, in the year 1926 [1][2]. Gottlieb Daimler first built the motorcycle version and later shifted to the automobile version of Mercedes Benz. Mercedes Benz has continued to be a global brand by retaining its class and luxurious automobiles legacy by improving its innovation, styling, safety, and performance. The company came from humble beginnings, and it has managed to come up as one of the best automobile brands across the globe. The vision for building up the Benz industry was to produce the world’s first gasoline-powered car.
German Auto-industry before National Socialism
In 1937 Daimler-Benz increased the production of the mobilization objects such as the LG 3000 trucks, then the plane engines such as the Db 600 and Db 601 [3]. To increase the production volume for the airplane engines, a new construction site was set up in Genshagen, a well-covered forest located in the south of Berlin, in 1936, which was before WW2[4]. During this period, the company majored in production trucks during the amid of World War II. Production of spare parts and military vehicle repairs was growing steadily. Demand for labor to handle the increased production was highly needed; unfortunately, arms production was greatly needed since most workers were fighting at the forefront of the war.
Initially, the labor force focused on employing women to cater to the required number of men on the battlefield. The war was so intense that the majority of the men were taken to the war front to defend the interests of the nation[5].
Creation of Mercedes-Benz
Having the urge to build the first gasoline automobile machine in 1886, Carl Benz patented the first gasoline-powered car[6]. After several years of endless fights with wobbly corporate associates and hindrances from bank protocols, Karl Benz started Benz &Co Rheinische Gasmotoren-Fabrik in 1883[7]. His company was one of the primary two builders established in Germany. The wife of Carl Benz Bertha was very active in most of his business ventures. The wife to Carl led to the promotion of Motorwagen by driving it on a 120-mile journey. She acted as her mechanic during the long journey. During this time, Gottlieb Daimler and Wilhelm Maybach collaborated on their engines, which would later be the power set for the Daimler Reitwagen motorcoach. Having invented a combustion engine in 1885, the two followed a successful attachment to a motorcycle, a boat, and a stage wagon coach[8]. The engine was much more effective and took a smaller space than its predecessors. Despite the accomplishment, Daimler and Maybach reconciled their business partnership after facing challenges with the company’s investors and later took back the organization in 1894. Gottlieb died in the late 1900s and left Maybach to run the company.
The motorcoach engine production led to the development of the world’s first truck in 1896 and the first Mercedes in 1901[9]. The two companies formed by the three merged in 1926 and became the Daimler-Benz AG. The merging of these two companies gave the firm the power to market, conduct production, sales, and design as a unit. During the motor show of 1926 in Berlin, the brand of Mercedes-Benz passenger cars was unveiled[10][11]. The company has enhanced and promoted the level of innovation since from the 1930s to today by improving the level of performance safety and the progress in the suspension systems.
Mercedes During WW2
The company Daimler-Benz used unpaid and forced labor to cater to its wartime engine manufacturing and the production of military vehicles. Many laborers lost their lives due to ill-treatment, while Nazi soldiers murdered some. The increased production demand saw Daimler-Benz hire women to work in the firms as the majority of the men were busy in the war. Since the women could not keep up with the production demand, this is where Daimler-Benz decided to use compulsory work hands from western Europe. These employees comprised POWs (detainees of war) initially captured and ferried away from the war front line and the citizens who had been kidnapped from different townships and communities[12]. The company also secondhanded the detainees in absorption camps as their forced labor force. Surprisingly the company did not deny at any given point that it was treating the workers working in their firms in a very inhuman manner. These prisoners stayed in concentration camps and were housed in barracks within the company’s premises. By this time, Germany had approved the Geneva Convention in 1929 and accepted to treat the prisoners in a much more human manner[13]. This kind of treatment was mainly reserved for allied prisoners of war. Laborers taken to the concentration camps were supervised in Daimler-Benz facilities and later exchanged to Daimler-Benz for money. Later, when the war ended, the company never hid its links with the Nazis federation together with the prison concentration camps. Still, it aggressively got intricate in the commemoration of the war events, responsibilities are given, and the prospects for the German automobile industry.
The demand for durable military vehicles was very high, and the company was running short of funds to cater to the growing labor force. Like other many German firms, during the reign of Adolf Hitler’s Third Reich, the company Daimler-Benz used forced labor to facilitate its wartime production of engines and military vehicles. Many laborers died from ill-treatment while the Nazi soldiers killed others in the concentration camps. Adolf Hitler co-opted Mercedes-Benz like other German society automakers together with the Nazi party[14]. After the first World War, the company in the production of gasoline automobiles, Mercedes Benz, was hijacked by the political movements associated with Adolf Hitler. These movements exploited the company’s superiority in engineering and industrial production. The Nazi regime took advantage of the company’s existence for its ruthless and hostile plans. During this period, the Nazis focused on several automobile makers produced locally during the troubled times of World War Two[15]. The fascistic eagerness that led to the rise of World War two got so much attention from social media groups. Many pictures of Adolf Hitler saluting the Nazi army while he was on top of a Mercedes-Benz automobile provided a great glimpse of the state of the art[16]. During this time, the advertisement of the Mercedes-Benz engineering fineness and political disfunction incredibly existed. The use of Mercedes-Benz by Adolf Hitler gave the public a great sense to purchase and use automobiles.
Due to the demand for reliable and durable vehicles during the War, Mercedes-Benz built theG3a and the G4, 6*4 all-terrain vehicles. The cars were propelled by an inline six-cylinder or a V-8-cylinder motor. The engines provided enough power to drive the machines in different terrains. The company also built L3000 types A and S, which were approximately three-ton trucks powered by a 75hp with 4849cc capacity of four-cylinder[17]. Daimler-Benz company focusing on truck production, manufactured over 8000 trucks. The heaviest trucks manufactured were the Type L6500 4*2 trucks manufactured by Mercedes-Benz from 1938 to 1940 weighed 6.5 tons. The vehicles had two rear-wheeled-drive axles for maximum propulsion[18].
At the start of the second world war, most privately owned cars with above 1000 CC and rear-wheel drive were impounded by the Nazis. The Mercedes-Benz cars and trucks were considered in this category as well. The Nazi army seized the Mercedes vehicles and made them staff cars for the Nazi party regime. Wehrmacht impounded the Mercedes-Benz omnibuses and used them as troop transporters and lab vehicles[19].
Post War Reconstruction
The valuation of the damage that occurred during the war in 1945 was off-putting to the company[20]. In conjunction with the Potsdam Agreement, all German possessions overseas remained seized and castoff for compensations expenses. Daimler-Benz lost all external holdings, partners, divisions, and comprehensive resources in the Soviet Union areas. The global system previously existed was demolished, and the firm had to begin rebuilding its grounds. Daimler Benz had to abandon unsettled privileges in contrast to the state.
In 1945 the company was demoted to the four southern German production plants which were; Unterturkheim, Seindelfingen, Mannheim and Gaggenau including the Berlin-Marienfelde. Daimler-Benz returned to its original position before the National Socialists came to power[21]. The Unterturkheim plat acted as the service and repair bay for the US military vehicles. The denazification of the German army’s top officials led to vital changes in the composition of the Board of Directors.
After numerous efforts were carried out, the firm got a ne production permit from the American authorities occupying the area on 3rd January 1946[22]. Despite the harsh conditions and situations, the firm was able to go back on its feet by the currency reformation in 1948.
By 1947, production had resumed in most of the plants in Germany[23]. The Mannheim and Gaggenau plants opposed picking the war thread time on truck production. In the states of Sindelfingen and Unterturkheim, the show had to be brought to life by rebuilding the firm’s production systems. After the war, immediate action in the production line was to manufacture passenger cars and commercial vehicles. Returning to the racing grounds was not a priority for the company as they considered it a gradual process that was not so vital at that particular moment in time. After the war, the engineers focused on repairing ordinary passenger cars for the first few years.
The company’s return to motor racing show events was in September 1950, when Karl Kling joined the ADAC six-hour race for sports and tourist cars using the Mercedes-Benz 170 S within the Nürburgring environment[24]. The racing inauguration for the company after the war was a significant boost for the company’s new era in production. In1951, the first new post-war passenger car was launched, the 220 (W187) and 300 (W 186). The 300 series became the company’s core motorsport car for the firm, which saw great success over the next few years.
Daimler-Benz management announced their plans to engage in motorsports in June 1951, focusing on racing and producing sports cars[25]. When the introduction of Formula 1 was inaugurated, the Grand Prix vehicles had to wait until 1954 for further commissioning. Mercedes-Benz launched the 300SL series as their first new racing car. The primary enhancements in this model were the multiple six-cylinder inline engines that comprised three Solex down-draught carburetors and an acute camshaft angle that boosted the output to129kW at 5200revolutions per minute[26].
Foreign expansion
After the company’s rebuilding, the growth of the sales revenues grew at a tremendous rate creating new records. This growth rate was cultivated not only by domestic sales but also by the exports to foreign customers such as in the US. In 1948 when the German currency was restructured, the economy enjoyed a low inflation rate that led to a higher industrial growth rate[27][28]. During this particular moment, a money change was converted from the Reichsmark to the Deutsche mark. This historical date was named the German Monetary Wonder or the Wirtschaftswunder. At this time, Daimler-Benz excelled so well in the company’s overall sales. During this time, the number of sales units acted as a symbol of the German Economic Miracle.
Till the 1950s, Daimler Benz relied on independent sales distributors worldwide to distribute on its behalf. This whole process proved to be so risky and ineffective in so many areas, such as the level of integrity. As a result, Daimler-Benz decided to expand its sales network to other regions. The company first expanded its grids in Europe, and by 1955 Daimler-Benz had already built up 178 general distributors across the globe[29]. Daimler-Benz had a lot of its global set-up in the post-war era. Still, the ages of financial development facilitated the firm to come back on its feet and reclaim its global automotive dealer market space. Daimler-Benz grabbed the excellent opportunity to expand its production centers to the worldwide market. The company took advantage of the cheap production costs by shifting to other countries. Still, some governments required local production facilities to be set up before they could grant international licenses to import. This requirement led to the extensive and rapid global expansion of the production facilities. Initial plants were opened in Brazil, Argentina, and India. These administrations needed to utilize the home-grown possessions first before they could grant permission to import. The countries created new opportunities for their people through job creation and enlargement of their automobile market view. Later on, global expansion was carried out to Iran, Turkey, and South Africa.
The company managed to penetrate the American market, thus; leading to the company’s global success. In North America, Daimler-Benz established a plant in 1955[30]. He had begun to labor with Max Hoffman, an Australian luxury car shipper based in New York by this time. Hoffman recommended the first purchase of the Mercedes-Benz 300SL Gull Wing to his American traders to distribute crosswise the nation. The market value and returns rose to 80% due to the widespread nature of the car[31]. The 300SL turns out to be the first Mercedes-Benz to flourish in the global marketplace. The success was a significant boost to the company’s global market view.
The presence of motorsports acted as a significant boost for the name Mercedes-Benz as a luxurious car for those clients who have sophisticated taste in automobiles. The company’s success in the American market space enabled the company to lay foundations in some renowned competitions in motorsports. The firm referred its finest cars to the Carrera Pan-American Mexico and the Grand Prix racing circuits. The sophisticated accomplishment on the race road built the company an undisputable status for building and becoming a technically innovative luxury car.
The production of commercial vehicles enhanced market development in the post-war era. The establishment of the newly formed German republic needed a novel and new communal transportation system. Daimler-Benz provided the appropriate and necessary state-of-the-art vehicles, buses, and trucks.
The stable ride and security of the company in the 60s as seen through the economic success of the preceding decade[32]. In the 1970s, the automobile faced a significant blow in instability, mainly caused by the oil crisis of 1973[33][34]. The high expectations of production capacity were mounted on the manufacturers due to oil scarcity, and governments laid a lot of pressure on the manufacturers to produce fuel-efficient cars to cut the foreign dependency on oil. Mercedes-Benz held its position while most of the industry changed its production grounds and manufacturing systems; Daimler-Benz held its position hence remained highly ranked internationally as a luxurious automobile manufacturer comprising busses and trucks. Mercedes Benz initiated considerable development at the finish of the 1950s[35]. At the onset of the oil predicament, Daimler-Benz realized, if the firm needed to retain the marketplace stake made, the company would continue to innovate to be ahead of others. The spirit of modernization moved the corporation for the next hundred years.
During this period, only three industrial developments took place. First, Daimler-Benz started the production of CFC-free climate-controlled vehicles. They realized that the CFC Automator’s chemicals were unfriendly to both the driver and the environment. Secondly, the control Area Network in communications systems of the car was made a typical feature to be used in their cars since 1992[36]. The Bosch industries developed the plan for industrial use. Still, Daimler-Benz grabbed the opportunity and used the technology in their luxury cars before other automobile manufacturers could adopt it. The third development was the intelligent key system that most of today’s drivers take pride in. having been invented by Siemens in the 90s, Mercedes-Benz adopted the key late in 1998[37]. The company has seen many numerous and tremendous changes over the years, some having been positive and others negative.
Conclusion
Mercedes-Benz has become a world-class automobile manufacturer. The company has taken a long journey to be where it is today. Facing the challenges imposed during the second world war and market-related struggles has proven the worthiness of the title. Production of Daimler and Maybach engines provided a ground foundation for the propulsion power of the whole Daimler-Benz manufacturing system. The Mercedes’ durability and effectiveness on the road have proven customers right that it is undoubtedly a world-class luxurious car. The international market has also laid a strong foundation for the high market value of Mercedes-Benz. The American market facilitated the universal growth rate of the company to date[38]. Motorsports have also provided a marketing ground for the company since it has proven effective enough to produce vehicles of high performance on the race track. The creation of Formula 1 enhanced the initial growth of Daimler-Benz on the race track while Grand Prix was on hold. The company is well established in the international market space. Today, Mercedes-Benz cars are widely used not only by civilians but also by most governments globally have adopted the use of the vehicles due to their efficiency, class, and luxury[39]. The level of style, efficiency, and design has given the company a competitive edge over other giant automobiles in the global market space. The firm has continued to retain its market share because of its innovativeness and customer experience hence; remaining one of the best automobile manufacturers in the global market space. The use of women in the manufacturing process indicated the high demand for automobiles during the onset of the war. At the same time, the majority of the men participated in the war, thus reducing the task force needed in the production chain for automobiles. The need for modernization in car manufacturing has intensified ever since. Germany has been a bedrock for producing reliable, stylish, well-designed, and luxurious vehicles. It has created a world mark on its automobiles. Mercedes-Benz has been a top-notch, well-manufactured vehicle in all aspects and dimensions needed and delivered to the customers.
Bibliography
Adler, Dennis. Mercedes-Benz. Motorbooks International, 2008.
Gerst, Detlef, Thomas Hardwig, Martin Kuhlmann, and Michael Schumann. “Group Work in the German Automobile Industry—The Case of Mercedes-Benz.” In Teamwork in the Automobile Industry, pp. 366-394. Palgrave Macmillan, London, 1999.
Gupta, Anil K., and Vijay Govindarajan. “Managing global expansion: A conceptual framework.” Business Horizons 43, no. 2 (2000): 45-45.
Hofner, H. “Mercedes-Benz motor cars. Vol. 2. From the Nuerburg to the 540 K (1929-1943); Mercedes-Benz Automobile. Bd. 2. Vom Nuerburg zum 540 K (1929-1943).” (1998).
Junior, Renato Ferreira, and Gabriela Scur. DEVELOPMENT OF PRODUCT-SERVICE SYSTEM BUSINESS MODEL: a study at Mercedes-Benz Brazil. No. 2019-36-0093. SAE Technical Paper, 2020.
Kumar, Vijay, and Patrick Whitney. “Faster, cheaper, deeper user research.” Design Management Journal (Former Series) 14, no. 2 (2003): 50-57.
McDermott, Michael C. “BMW and Mercedes-Benz first international plant location decision: the site selection and negotiation process in the USA.” International Journal of Automotive Technology and Management 20 14, no. 2 (2014): 172-193.
McDermott, Michael C. “Mercedes-Benz, Tuscaloosa, Alabama: Drivers and Processes in the International Plant Location Decision.” Southern Business & Economic Journal 36, no. 1 (2013).
Scherner, Jonas, Jochen Streb, and Stephanie Tilly. “Supplier networks in the German aircraft industry during World War II and their long-term effects on West Germany’s automobile industry during the ‘Wirtschaftswunder.'” Business History 56, no. 6 (2014): 996-1020.
Štrach, Pavel, and André M. Everett. “Brand corrosion: mass marketing’s threat to luxury automobile brands after merger and acquisition.” Journal of Product & Brand Management (2006).
[1] Adler, Dennis. Mercedes-Benz. Motorbooks International, 2008.
[2] Hofner, H. “Mercedes-Benz motor cars. Vol. 2. From the Nuerburg to the 540 K (1929-1943)
[3] Gupta, Anil K., and Vijay Govindarajan. “Managing global expansion: A conceptual framework.” Business Horizons 43, no. 2 (2000)
[4] Kumar, Vijay, and Patrick Whitney. “Faster, cheaper, deeper user research.” Design Management Journal (Former Series)
[5] Kumar, Vijay, and Patrick Whitney. “Faster, cheaper, deeper user research.”
[6] Štrach, Pavel, and André M. Everett. “Brand corrosion: mass marketing’s threat to luxury automobile brands after merger and acquisition.”
McDermott, Michael C. “BMW and Mercedes-Benz first international plant location decision: the site selection and negotiation process in the USA.”
[8] Adler, Dennis. Mercedes-Benz. Motorbooks International, 2008.
[9] Hofner, H. “Mercedes-Benz motor cars. Vol. 2. From the Nuerburg to the 540 K (1929-1943); Mercedes-Benz Automobile.
[10] Gupta, Anil K., and Vijay Govindarajan. “Managing global expansion: A conceptual framework.” Business Horizons 43, no. 2 (2000)
[11] Kumar, Vijay, and Patrick Whitney. “Faster, cheaper, deeper user research.” Design Management Journal (Former Series) 14, no. 2 (2003): 50-57.
[12] Gerst, Detlef, Thomas Hardwig, Martin Kuhlmann, and Michael Schumann. “Group Work in the German Automobile Industry—The Case of Mercedes-Benz.”
[13] Gupta, Anil K., and Vijay Govindarajan. “Managing global expansion: A conceptual framework.” Business Horizons 43, no. 2 (2000)
[14] Kumar, Vijay, and Patrick Whitney. “Faster, cheaper, deeper user research.” Design Management Journal (Former Series)
[15] Scherner, Jonas, Jochen Streb, and Stephanie Tilly. “Supplier networks in the German aircraft industry during World War II and their long-term effects on West Germany’s automobile industry during the ‘Wirtschaftswunder.’
[16] Adler, Dennis. Mercedes-Benz. Motorbooks International, 2008.
[17] Adler, Dennis. Mercedes-Benz. Motorbooks International, 2008.
[18] Štrach, Pavel, and André M. Everett. “Brand corrosion: mass marketing’s threat to luxury automobile brands after merger and acquisition.”
[19] Scherner, Jonas, Jochen Streb, and Stephanie Tilly. “Supplier networks in the German aircraft industry during World War II and their long-term effects on West Germany’s automobile industry during the ‘Wirtschaftswunder.’
[20] Gupta, Anil K., and Vijay Govindarajan. “Managing global expansion: A conceptual framework.” Business Horizons 43, no. 2 (2000)
[21] Junior, Renato Ferreira, and Gabriela Scur. DEVELOPMENT OF PRODUCT-SERVICE SYSTEM BUSINESS MODEL: a study at Mercedes-Benz Brazil.
[22] Gerst, Detlef, Thomas Hardwig, Martin Kuhlmann, and Michael Schumann. “Group Work in the German Automobile Industry—The Case of Mercedes-Benz.”
[23] McDermott, Michael C. “Mercedes-Benz, Tuscaloosa, Alabama: Drivers and Processes in the International Plant Location Decision.”
[24] Gerst, Detlef, Thomas Hardwig, Martin Kuhlmann, and Michael Schumann. “Group Work in the German Automobile Industry—The Case of Mercedes-Benz.”
[25] Hofner, H. “Mercedes-Benz motor cars. Vol. 2. From the Nuerburg to the 540 K (1929-1943); Mercedes-Benz Automobile. Bd. 2. Vom Nuerburg zum 540 K (1929-1943).” (1998).
[26] Kumar, Vijay, and Patrick Whitney. “Faster, cheaper, deeper user research.” Design Management Journal (Former Series) 14, no. 2 (2003)
[27] Gupta, Anil K., and Vijay Govindarajan. “Managing global expansion: A conceptual framework.”
[28] Gupta, Anil K., and Vijay Govindarajan. “Managing global expansion: A conceptual framework.”
[29] Gupta, Anil K., and Vijay Govindarajan. “Managing global expansion: A conceptual framework.”
[30] Štrach, Pavel, and André M. Everett. “Brand corrosion: mass marketing’s threat to luxury automobile brands after merger and acquisition.”
[31] Štrach, Pavel, and André M. Everett. “Brand corrosion: mass marketing’s threat to luxury automobile brands after merger and acquisition.”
[32] Junior, Renato Ferreira, and Gabriela Scur. DEVELOPMENT OF PRODUCT-SERVICE SYSTEM BUSINESS MODEL: a study at Mercedes-Benz Brazil.
[33] McDermott, Michael C. “Mercedes-Benz, Tuscaloosa, Alabama: Drivers and Processes in the International Plant Location Decision.”
[34] Scherner, Jonas, Jochen Streb, and Stephanie Tilly. “Supplier networks in the German aircraft industry during World War II and their long-term effects on West Germany’s automobile industry during the ‘Wirtschaftswunder.’
[35] Adler, Dennis. Mercedes-Benz. Motorbooks International, 2008.
[36] Junior, Renato Ferreira, and Gabriela Scur. DEVELOPMENT OF PRODUCT-SERVICE SYSTEM BUSINESS MODEL: a study at Mercedes-Benz Brazil. No. 2019-36-0093. SAE Technical Paper, 2020.
[37] McDermott, Michael C. “BMW and Mercedes-Benz first international plant location decision: the site selection and negotiation process in the USA.”
[38] Kumar, Vijay, and Patrick Whitney. “Faster, cheaper, deeper user research.” Design Management Journal (Former Series) 14, no. 2 (2003): 50-57.
[39] Gerst, Detlef, Thomas Hardwig, Martin Kuhlmann, and Michael Schumann. “Group Work in the German Automobile Industry—The Case of Mercedes-Benz.”
write