Mercedes-Benz is synonymous with luxury vehicles, but to truly understand who owns Mercedes-Benz, we need to look at its parent company, Mercedes-Benz Group AG. Headquartered in Stuttgart, Germany, this multinational corporation is a powerhouse in the automotive industry. Formed in 1926 through the merger of Benz & Cie. and Daimler Motoren Gesellschaft, the company boasts a rich history of innovation and engineering excellence.
Today, Mercedes-Benz Group AG stands as one of the world’s leading producers of premium automobiles and the largest manufacturer of commercial vehicles. With a global workforce of approximately 166,000 employees and a staggering revenue exceeding €153.2 billion in 2023, the company’s reach is extensive. Mercedes-Benz Group AG operates numerous brands and also has a significant financial services division.
/GettyImages-1200494854-15e5532729d041638f7386607570a5f0.jpg)
While Mercedes-Benz is renowned for its luxury car division, producing models ranging from the compact A-Class to the flagship S-Class sedans, its portfolio extends far beyond passenger cars. The company also manufactures a wide array of commercial vehicles, including trucks, coaches, buses, and the popular Sprinter van series. These commercial vehicles are sold primarily in Western Europe, Asia, and Latin America. Mercedes-Benz’s brand strength is undeniable; in 2020, Forbes ranked it as the 23rd most valuable brand globally, highlighting its significant sales and large workforce.
/GettyImages-175373874-572841463df78c7658f1a895.jpg)
Mercedes-Benz Group AG’s influence in the automotive world is further amplified by its ownership of several prominent subsidiaries:
Freightliner: Acquired in 1981, Freightliner is a leading American truck manufacturer operating as Daimler Trucks North America LLC. Based in Fort Mill, South Carolina, Freightliner is primarily recognized for its heavy-duty Class 8 trucks, commonly seen as semi-trucks on highways. They also produce smaller Class 5-7 trucks, with the Cascadia Evolution model being a flagship for long-haul transportation.
/freightliner-059402840a78471bb3996f9899977a12.jpg)
Thomas Built Buses: Since 1998, Thomas Built Buses has been part of the Mercedes-Benz Group AG family. Originating as a streetcar company in 1916 and headquartered in Highpoint, North Carolina, Thomas Built Buses is a major bus manufacturer in the United States. They offer a comprehensive range of buses, including school buses, childcare buses, and specialty vehicles, and are known for pioneering alternative fuel options like compressed natural gas (CNG) and propane in school buses.
/thomas-built-buses-08c965420d4c491c89b6a7a319778f9b.jpg)
Smart Automobile: Based in Boblingen, Germany, Smart Automobile specializes in microcars and subcompact cars. Conceived in the 1970s in collaboration with Swatch Group, the first Smart model debuted in 1998. The brand, whose name stands for Swatch Mercedes Art, produces the Fortwo and Forfour models, available in both electric and gasoline versions and sold globally.
/smart-car-580996319b51470184b1297d472131a0.jpg)
Mercedes-Benz Bank: A wholly-owned subsidiary located in Stuttgart, Mercedes-Benz Bank AG provides financial services as the global financial arm of Mercedes-Benz Group AG. Established in 2001 as DaimlerChrysler Bank and renamed in 2008, the bank primarily focuses on auto financing and leasing operations.
Detroit Diesel: With roots dating back to 1938 as General Motors’ diesel division, Detroit Diesel became part of Mercedes-Benz Group AG in 2000. Located in Redford, Michigan, Detroit Diesel manufactures heavy-duty and mid-range diesel engines, transmissions, and related components for the trucking industry, employing over 2,200 people.
/detroit-diesel-f1526d8a1b764563a149141270694844.jpg)
Leadership and Ownership Structure:
The Chairman of the Board of Management of Mercedes-Benz AG, a role equivalent to CEO, is Ola Källenius, who assumed the position on May 22, 2019.
Regarding ownership, a significant portion of Mercedes-Benz Group AG shares, 56.7%, are held by institutional investors, including hedge funds and pension funds. Chinese investor Li Shufu holds a substantial 9.7% stake through Tenaciou3 Prospect Investment Limited, and the Kuwait Sovereign Savings Fund owns 6.8%. Retail investors account for the remaining 20.3% of shares.
Past Challenges:
Mercedes-Benz Group AG, formerly Daimler AG, has faced challenges, including the Daimler Emissions Scandal. This scandal involved the illegal manipulation of emission tests for Mercedes-Benz vehicles between 2009 and 2016. Software designed to cheat emissions tests was found in diesel vehicles, leading to a $2.2 billion settlement in 2020.
Historically, Mercedes-Benz Group AG also held a stake in Tesla. In 2009, Daimler acquired a 9% stake in Tesla for $50 million but divested its remaining 4% stake in 2014 for $780 million.
In Conclusion:
Mercedes-Benz, the iconic automotive brand, is owned by Mercedes-Benz Group AG. This German multinational corporation is not only the parent company of the luxury car brand but also encompasses a diverse portfolio of commercial vehicle manufacturers and financial services. Mercedes-Benz Group AG’s global reach and diverse operations solidify its position as a major player in the automotive industry.
