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Who is the Owner of Mercedes Benz?

Mercedes-Benz, the iconic German luxury automotive brand, has carved a significant presence in the Canadian market, captivating automotive enthusiasts and discerning buyers alike. With a rich heritage spanning over a century, Mercedes-Benz has become synonymous with engineering excellence, cutting-edge innovation, and uncompromising luxury.


In Canada, Mercedes-Benz has established itself as a prominent player in the luxury vehicle segment, catering to a diverse range of consumers who value the brand’s unwavering commitment to quality, performance, and prestige. From the sleek and sophisticated sedans to the rugged and capable SUVs, Mercedes-Benz offers a comprehensive lineup that resonates with the discerning tastes of Canadian drivers. The brand’s nationwide network of 59 authorized dealerships ensures a seamless customer experience, providing exceptional sales and service support across the country.

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The Founding Fathers

The story of Mercedes-Benz begins with two visionary pioneers, Karl Benz and Gottlieb Daimler, whose inventions and innovations laid the foundation for the modern automobile industry. Their paths would eventually converge, but their individual contributions were equally significant.

Karl Benz, born in 1844, is widely regarded as the inventor of the first gasoline-powered automobile. In 1885, he patented his three-wheeled Benz Patent Motorwagen, a groundbreaking invention that marked the birth of the automobile. Benz’s ingenuity and determination paved the way for the future of personal transportation. 

Gottlieb Daimler, born in 1834, was a brilliant engineer who worked alongside Wilhelm Maybach. Together, they developed the first high-speed petrol engine, which they successfully installed in a two-wheeled vehicle in 1885, creating the world’s first motorcycle. Their collaboration led to the establishment of Daimler-Motoren-Gesellschaft in 1890, laying the groundwork for the future of the automobile industry. 

Emil Jellinek, an influential entrepreneur and automobile enthusiast, played a pivotal role in the creation of the Mercedes-Benz brand. In 1900, he commissioned the development of a powerful and luxurious automobile from Daimler-Motoren-Gesellschaft, which would later be named after his daughter, Mercedes. Jellinek’s vision and influence helped shape the brand’s identity and its focus on performance and prestige. 

 

The Benz Patent Motorwagen

In 1885, Karl Benz, a German engineer and inventor, created what is widely regarded as the first practical modern automobile – the Benz Patent Motorwagen (patent no. 37435). This three-wheeled vehicle, powered by a single-cylinder four-stroke engine, marked a revolutionary milestone in the history of transportation. 

Benz’s invention was a groundbreaking achievement, as it demonstrated the feasibility of a self-propelled vehicle that could be controlled and steered. The Benz Patent Motorwagen not only paved the way for the modern automobile industry but also ushered in a new era of personal mobility and transportation.

The significance of the Benz Patent Motorwagen cannot be overstated. It laid the foundation for the development of the internal combustion engine and the subsequent advancements in automotive technology. Benz’s pioneering work inspired countless engineers and inventors, and his creation has left an indelible mark on the world we live in today.

 

The Birth of Mercedes-Benz

The iconic Mercedes-Benz brand was born in 1926 through the merger of two pioneering automotive companies: Benz & Cie. and Daimler-Motoren-Gesellschaft (DMG). Founded by Karl Benz and Gottlieb Daimler respectively, these firms were among the earliest manufacturers of automobiles in the late 19th century.

The merger brought together the expertise and innovations of both companies, combining Benz’s Patent Motorwagen, the world’s first gasoline-powered automobile, with DMG’s groundbreaking engines and cutting-edge technology. The new company was aptly named Daimler-Benz, honoring the legacies of its founders.

The development of the Mercedes-Benz brand name itself is a fascinating story. The name “Mercedes” was first used in 1900 by Austrian businessman Emil Jellinek, who registered it as a brand name for DMG’s line of vehicles. Jellinek had a deep admiration for the company’s vehicles and named them after his daughter, Mercedes. The combination of “Mercedes” and “Benz” created a powerful brand identity that has endured for over a century. 

 

Early Innovations and Milestones

Mercedes-Benz has a rich history of pioneering innovations that have shaped the automotive industry. From the very beginning, the company’s founders were driven by a relentless pursuit of technological advancements and engineering excellence. One of the earliest milestones was the development of the first modern automobile, the Benz Patent Motorwagen, in 1886 by Karl Benz. This groundbreaking invention paved the way for the future of personal transportation.

In the early 20th century, the merger of Benz & Cie and Daimler-Motoren-Gesellschaft in 1926 gave birth to the Mercedes-Benz brand. This union brought together the expertise of two visionary companies, setting the stage for numerous groundbreaking innovations. One such innovation was the introduction of the first passenger car with a crumple zone, the Mercedes-Benz 180 “Ponton” in 1953, which revolutionized automotive safety. 

Throughout its history, Mercedes-Benz has consistently pushed the boundaries of what is possible in automotive engineering. From the development of the first production passenger car diesel engine in 1936 to the introduction of the iconic S-Class in 1972, which set new standards for luxury and innovation, the company has consistently raised the bar. 

 

Daimler AG and Mercedes-Benz Group AG

Mercedes-Benz is owned by the Mercedes-Benz Group AG, formerly known as Daimler AG. The company underwent a rebranding in 2022, changing its name to better align with its core brand and business focus on Mercedes-Benz vehicles. The Mercedes-Benz Group AG is a German multinational corporation headquartered in Stuttgart, Baden-Württemberg.

The Mercedes-Benz Group AG is the parent company of the Mercedes-Benz brand and its subsidiaries. Mercedes-Benz AG, the company responsible for developing, manufacturing, and marketing Mercedes-Benz passenger cars and vans, operates as a subsidiary under the Mercedes-Benz Group AG umbrella. This structure allows the parent company to oversee and coordinate the various divisions and operations related to the Mercedes-Benz brand.

 

Major Shareholders

Mercedes-Benz Group AG has a diverse shareholder base, with both institutional and strategic investors holding significant stakes in the company. According to the company’s shareholder structure, the largest individual shareholder is the Chinese investor Li Shufu, who holds a 9.69% equity interest through his company Zhejiang Geely Holding Group Co., Ltd.

Another major shareholder is the Kuwait Investment Authority, a sovereign wealth fund owned by the State of Kuwait, which has held a stake in Mercedes-Benz since 1974. As of the latest filings, the Kuwait Investment Authority owns 5.57% of the company’s shares, making it a significant institutional investor.

 

Leadership and Key Executives

At the helm of Mercedes-Benz Group AG is Ola Källenius, who assumed the role of Chairman of the Board of Management in May 2019. Källenius has been instrumental in shaping the company’s strategic direction and spearheading its transition towards electric mobility and sustainable transportation solutions.

Alongside Källenius, the Board of Management comprises several key executives, each responsible for overseeing critical operations within the Mercedes-Benz Group. This includes Jörg Burzer, the Member of the Board responsible for Production, Quality & Supply Chain , and Melody Lee, who was recently appointed as the Chief Marketing Officer for Mercedes-Benz USA.

The leadership team at Mercedes-Benz has a profound impact on the brand’s direction, innovation, and overall success. Throughout its history, the company has been guided by visionary leaders who have left an indelible mark on the automotive industry. From the pioneering work of Karl Benz and Gottlieb Daimler to the modern-day stewardship of Källenius and his team, Mercedes-Benz’s leadership has consistently pushed boundaries and set new standards for excellence.

 

Global Impact and Contributions

Mercedes-Benz has left an indelible mark on the automotive industry through groundbreaking innovations and technological advancements. From the invention of the first gasoline-powered automobile by Karl Benz in 1886 to the development of cutting-edge safety features and luxury designs, the brand has consistently pushed the boundaries of what’s possible.

One of Mercedes-Benz’s most significant contributions is the pioneering of safety technologies. The brand introduced features such as crumple zones, anti-lock braking systems (ABS), and electronic stability control (ESC), which have become industry standards and saved countless lives. The company’s commitment to safety has been recognized with numerous awards, including the Euro NCAP Advanced Award for its PRE-SAFE® system.

Mercedes-Benz has also been at the forefront of innovation in luxury and performance. Its iconic models, such as the S-Class, E-Class, and AMG performance line, have set benchmarks for refinement, craftsmanship, and driving dynamics. The brand’s relentless pursuit of excellence has earned it accolades like the World Car of the Year award for the S-Class and multiple Engine of the Year awards for its powerful and efficient powertrains.

Moreover, Mercedes-Benz has been a trailblazer in the development of alternative powertrains and sustainable mobility solutions. The company’s EQ line of electric vehicles and its commitment to reducing its environmental footprint have positioned it as a leader in the transition towards a more sustainable future for the automotive industry.

 

Mercedes-Benz in Canada

Mercedes-Benz has a long and storied history in the Canadian market, with its presence dating back to the early 20th century. The brand has been a symbol of luxury, performance, and innovation for generations of Canadian automotive enthusiasts.

One of the earliest milestones for Mercedes-Benz in Canada was the establishment of its first Canadian dealership in Montreal in 1913. This laid the foundation for the brand’s growth and expansion across the country in the following decades. Over the years, Mercedes-Benz has solidified its position as a leading luxury automotive brand in Canada, consistently ranking among the top choices for discerning buyers.

According to sales figures from GoodCarBadCar, Mercedes-Benz has maintained a significant market share in Canada. In 2018, the brand sold 50,900 units, capturing 2.56% of the Canadian market. While sales dipped slightly from the previous year, Mercedes-Benz remains a dominant force in the luxury segment.

Popular models among Canadian consumers include the iconic C-Class and E-Class sedans, as well as the versatile SUV offerings like the GLC and GLE. The brand’s commitment to performance and innovation has also resonated with Canadian buyers, with models like the AMG lineup and the cutting-edge EQS electric vehicle generating significant interest.

In recent years, Mercedes-Benz Canada has reported strong sales results, particularly in the luxury van segment. According to a press release, the brand’s Vans division experienced a 58.5% year-over-year growth in Q4 2023, further solidifying its position in the Canadian market.

 

Organizational Structure

Mercedes-Benz Group AG, formerly known as Daimler AG, has undergone a significant organizational restructuring in recent years to streamline decision-making processes and enhance customer focus. The company’s new corporate structure, launched in November 2019, comprises a parent company and three legally independent entities: Mercedes-Benz AG, Daimler Truck AG, and Daimler Mobility AG.

Mercedes-Benz AG serves as the core division, responsible for the development, production, and sales of Mercedes-Benz passenger cars and vans. This subsidiary is structured into several key divisions, including research and development, production, sales and marketing, and after-sales service. The company’s iconic brands, such as Mercedes-AMG, Mercedes-Maybach, and Mercedes-EQ (for electric vehicles), fall under the purview of Mercedes-Benz AG. Source

Daimler Truck AG oversees the development, production, and sales of trucks and buses under the Freightliner, Western Star, and Fuso brands. This subsidiary operates independently from Mercedes-Benz AG, catering to the commercial vehicle market with a dedicated focus on innovation and customer-centric solutions.

Daimler Mobility AG, the third subsidiary, manages the company’s financial services operations, including leasing, financing, and mobility solutions. This division plays a crucial role in supporting the sales and after-sales activities of both Mercedes-Benz AG and Daimler Truck AG.

In addition to these three operating subsidiaries, Mercedes-Benz Group AG also encompasses corporate functions such as Group Research and Mercedes-Benz Mobility, which oversee cross-divisional activities and innovations across the entire organization. 

 

Brand Strategy and Operations

The ownership structure of Mercedes-Benz, with Daimler AG (now Mercedes-Benz Group AG) as the parent company, has a significant influence on the brand’s strategy and operations. As the majority shareholder, Daimler AG’s vision and strategic priorities shape the overall direction of the Mercedes-Benz brand. This includes decisions related to product development, technological innovations, sustainability initiatives, and global expansion plans.

According to the Mercedes-Benz Annual Report 2022, the company’s strategic priorities for 2023 and beyond include safeguarding the optimal “operating point” of their business system, continuing the transformation towards electric mobility, and leveraging the potential of digitalization and software.

The ownership structure also influences Mercedes-Benz’s brand positioning and marketing strategies. As a luxury brand, Mercedes-Benz aims to maintain a premium image and cater to discerning customers. The company’s marketing campaigns often emphasize the brand’s heritage, innovation, and commitment to quality and performance, as highlighted in a comprehensive analysis.

Looking ahead, potential changes in the ownership structure or the strategic priorities of the parent company could impact Mercedes-Benz’s operations and brand direction. However, the brand’s long-standing reputation and commitment to excellence are likely to remain at the forefront, ensuring a consistent focus on delivering exceptional vehicles and customer experiences.

 

Competitive Landscape in Canada

In the fiercely competitive Canadian luxury automobile market, Mercedes-Benz faces stiff competition from several renowned brands. According to data from Driving.ca, the top luxury brands in Canada in 2021 included BMW, Lexus, Audi, Acura, Infiniti, Volvo, Porsche, Land Rover, and Lincoln, in addition to Mercedes-Benz.

To maintain its competitive edge, Mercedes-Benz employs a multifaceted marketing strategy tailored to the Canadian market. This includes targeted advertising campaigns, strategic partnerships, and a strong emphasis on customer experience and brand loyalty. The company’s extensive dealer network across Canada plays a crucial role in delivering exceptional customer service and fostering long-term relationships with buyers.

Mercedes-Benz’s marketing efforts also highlight the brand’s commitment to innovation, sustainability, and cutting-edge technology, aligning with the values and preferences of Canadian luxury car enthusiasts. By continuously introducing new models and features that cater to the unique needs of the Canadian market, Mercedes-Benz aims to solidify its position as a leader in the luxury automotive segment.

 

Future Plans and Innovations

Mercedes-Benz is steadfastly committed to a sustainable future, with electric vehicles (EVs) at the forefront of their strategy. As outlined in their Climate Transition Action Plan 2024, the company aims for a full electrification of their vehicle fleet, transitioning away from traditional combustion engines.

In pursuit of this ambitious goal, Mercedes-Benz has several exciting EV models in the pipeline. The highly anticipated EQS, the brand’s first all-electric luxury sedan, is set to redefine the electric driving experience with cutting-edge technology and exceptional range. Additionally, the EQC, an all-electric SUV, and the EQV, an electric van, are poised to cater to diverse consumer needs.

Beyond just electric powertrains, Mercedes-Benz is at the forefront of technological advancements that will shape the future of luxury mobility. Their focus on digital and sustainable innovations aims to create a seamless and desirable experience for their customers. From advanced driver assistance systems to cutting-edge infotainment and connectivity features, Mercedes-Benz is committed to delivering a truly luxurious and technologically advanced driving experience.

Moreover, the company’s strategic goals extend beyond just product offerings. Mercedes-Benz is actively pursuing initiatives to reduce its environmental footprint throughout the entire value chain, from sourcing sustainable materials to optimizing manufacturing processes. Their commitment to sustainability is deeply ingrained in their corporate philosophy, reflecting their desire to be a responsible corporate citizen.

 

Consumer Insights and Brand Perception in Canada

Mercedes-Benz has cultivated a strong brand reputation and loyal customer base in Canada. The brand is widely regarded for its commitment to quality, luxury, and innovation, fostering a deep sense of pride among its owners. According to a survey by YouGov BrandIndex, Mercedes-Benz’s Ad Awareness score has been steadily increasing, indicating a positive impact of its marketing efforts on consumer perception.

Customer testimonials and reviews consistently highlight the exceptional driving experience, attention to detail, and advanced technological features offered by Mercedes-Benz vehicles. Many owners express a sense of satisfaction and confidence in their purchase decision, often leading to repeat business and brand loyalty.

Industry experts and market analysts praise Mercedes-Benz’s customer-centric approach, which focuses on creating connected and seamless customer journeys. As highlighted by Salesforce, Mercedes-Benz has embraced digital transformation to enhance the customer experience, from personalized marketing to streamlined sales and service processes.

Furthermore, Mercedes-Benz fosters a sense of community among its customers through various events and activities, as noted in a comprehensive analysis by BrandVM. These initiatives not only strengthen brand loyalty but also provide valuable insights into consumer preferences and trends, enabling Mercedes-Benz to continuously refine its offerings and strategies.

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Questions About Mercedes Benz Ownership

Mercedes-Benz traces its origins to two innovative automotive companies, Benz & Cie. and Daimler-Motoren-Gesellschaft (DMG), founded by Karl Benz and Gottlieb Daimler, respectively. Karl Benz is credited with inventing the first gasoline-powered automobile, the Benz Patent Motorwagen, in 1886. Gottlieb Daimler, meanwhile, developed the first high-speed petrol engine. In 1926, these two companies merged to form Daimler-Benz, adopting the brand name “Mercedes” from the daughter of Emil Jellinek, an influential entrepreneur who was deeply involved with the company and had a significant impact on its development.

The founding fathers of Mercedes-Benz were Karl Benz and Gottlieb Daimler. Karl Benz is recognized as the inventor of the first practical modern automobile, the Benz Patent Motorwagen, in 1885. Gottlieb Daimler, collaborating with Wilhelm Maybach, developed the first high-speed petrol engine, which they successfully installed in a two-wheeled vehicle in 1885, creating the world’s first motorcycle. Their innovative spirit was evident in these early achievements, which laid the groundwork for the future of the automotive industry.

The Benz Patent Motorwagen, created by Karl Benz in 1885, was a groundbreaking invention that marked a revolutionary milestone in the history of transportation. It was the first practical modern automobile, powered by a single-cylinder four-stroke engine. This three-wheeled vehicle demonstrated the feasibility of a self-propelled, controlled, and steerable vehicle, paving the way for the modern automobile industry and ushering in a new era of personal mobility and transportation.

The Mercedes-Benz brand name was born when the Austrian businessman Emil Jellinek registered the name “Mercedes” as a brand name for DMG’s line of vehicles in 1900. Jellinek had a deep admiration for the company’s vehicles and named them after his daughter, Mercedes. The combination of “Mercedes” and “Benz” created the iconic brand identity that has endured for over a century, symbolizing luxury, innovation, and excellence in automotive engineering.

Mercedes-Benz has a rich history of pioneering innovations, including the development of the first modern automobile, the Benz Patent Motorwagen, in 1886. Other milestones include the introduction of the first passenger car with a crumple zone (Mercedes-Benz 180 “Ponton”) in 1953, the development of the first production passenger car diesel engine in 1936, and the launch of the iconic S-Class in 1972, which set new standards for luxury and innovation in the automotive industry.

Mercedes-Benz is owned by the Mercedes-Benz Group AG, formerly known as Daimler AG. The company underwent a rebranding in 2022, changing its name to better align with its core brand and business focus on Mercedes-Benz vehicles. Mercedes-Benz AG, the subsidiary responsible for developing, manufacturing, and marketing Mercedes-Benz passenger cars and vans, operates under the Mercedes-Benz Group AG umbrella, ensuring a focused and unified approach to its business operations.

The largest individual shareholder of Mercedes-Benz Group AG is the Chinese investor Li Shufu, who holds a 9.69% equity interest through his company Zhejiang Geely Holding Group Co., Ltd. Another major shareholder is the Kuwait Investment Authority, a sovereign wealth fund owned by the State of Kuwait, which owns 5.57% of the company’s shares, reflecting the global investment interest in the brand.

The key executives leading Mercedes-Benz Group AG include Ola Källenius, the Chairman of the Board of Management, Jörg Burzer, the Member of the Board responsible for Production, Quality & Supply Chain, and Melody Lee, the Chief Marketing Officer for Mercedes-Benz USA. These leaders have a profound impact on the brand’s direction, innovation, and overall success, guiding the company through the evolving automotive landscape.

Mercedes-Benz has made significant contributions to the automotive industry through groundbreaking innovations and technological advancements. These include pioneering safety technologies like crumple zones, anti-lock braking systems (ABS), and electronic stability control (ESC), as well as setting benchmarks for luxury, performance, and sustainable mobility solutions with models like the S-Class and the EQ line of electric vehicles, which have redefined the standards for the industry.

Mercedes-Benz has a long and storied history in the Canadian market, with its presence dating back to the early 20th century. The brand has consistently ranked among the top choices for discerning Canadian buyers, with popular models including the C-Class, E-Class, and SUV offerings like the GLC and GLE. In recent years, Mercedes-Benz Canada has reported strong sales results, particularly in the luxury van segment, demonstrating the brand’s strong appeal and market presence in Canada.

Mercedes-Benz Group AG’s organizational structure comprises a parent company and three legally independent entities: Mercedes-Benz AG (responsible for passenger cars and vans), Daimler Truck AG (responsible for trucks and buses), and Daimler Mobility AG (managing financial services operations). This structure streamlines decision-making processes and enhances customer focus across the various divisions, allowing for a more agile and responsive business model.

The ownership structure, with Daimler AG (now Mercedes-Benz Group AG) as the parent company, has a significant influence on the brand’s strategy and operations. As the majority shareholder, Daimler AG’s vision and strategic priorities shape the overall direction of the Mercedes-Benz brand, including decisions related to product development, technological innovations, sustainability initiatives, and global expansion plans, ensuring that the brand remains at the forefront of the automotive industry.

In the fiercely competitive Canadian luxury automobile market, Mercedes-Benz faces stiff competition from renowned brands such as BMW, Lexus, Audi, Acura, Infiniti, Volvo, Porsche, Land Rover, and Lincoln. To maintain its competitive edge, Mercedes-Benz employs targeted marketing strategies, emphasizes customer experience and brand loyalty, and continuously introduces new models and features tailored to the Canadian market, catering to the specific needs and preferences of Canadian consumers.

Mercedes-Benz is steadfastly committed to a sustainable future, with electric vehicles (EVs) at the forefront of their strategy. The brand aims for a full electrification of their vehicle fleet, transitioning away from traditional combustion engines. Exciting EV models in the pipeline include the EQS, EQC, and EQV. Mercedes-Benz is also at the forefront of technological advancements in areas such as advanced driver assistance systems, infotainment, and connectivity, positioning the brand as a leader in the future of mobility.

Mercedes-Benz has cultivated a strong brand reputation and loyal customer base in Canada. The brand is widely regarded for its commitment to quality, luxury, and innovation, fostering a deep sense of pride among its owners. Customer testimonials and industry experts praise Mercedes-Benz’s exceptional driving experience, attention to detail, and customer-centric approach, which focuses on creating connected and seamless customer journeys, enhancing the overall ownership experience.

The merger between Benz & Cie. and Daimler-Motoren-Gesellschaft (DMG) in 1926 was a pivotal moment in the history of Mercedes-Benz. It brought together the expertise and innovations of two pioneering automotive companies, combining Benz’s Patent Motorwagen with DMG’s groundbreaking engines and cutting-edge technology. This merger laid the foundation for the iconic Mercedes-Benz brand and its continued legacy of excellence, shaping the future of the automotive industry.

Mercedes-Benz has been at the forefront of safety innovations in the automotive industry. The brand introduced features such as crumple zones, anti-lock braking systems (ABS), and electronic stability control (ESC), which have become industry standards and saved countless lives. Mercedes-Benz has been recognized with numerous awards for its safety technologies, including the Euro NCAP Advanced Award for its PRE-SAFE® system, highlighting the brand’s commitment to safety and innovation.

The S-Class is an iconic model for Mercedes-Benz, representing the pinnacle of luxury and innovation. Introduced in 1972, the S-Class set new standards for refinement, craftsmanship, and driving dynamics. It has consistently pushed the boundaries of what is possible in automotive engineering and has earned accolades such as the World Car of the Year award, cementing its status as a benchmark for the luxury car segment and a symbol of the brand’s commitment to excellence.

Mercedes-Benz has been a trailblazer in the development of alternative powertrains and sustainable mobility solutions. The company’s EQ line of electric vehicles and its commitment to reducing its environmental footprint throughout the entire value chain have positioned it as a leader in the transition towards a more sustainable future for the automotive industry. Mercedes-Benz’s strategic goals include initiatives to reduce its environmental impact and promote sustainable practices, reflecting the brand’s dedication to environmental stewardship and innovation.

Emil Jellinek, an influential entrepreneur and automobile enthusiast, played a pivotal role in the creation of the Mercedes-Benz brand. In 1900, he commissioned the development of a powerful and luxurious automobile from Daimler-Motoren-Gesellschaft, which would later be named after his daughter, Mercedes. Jellinek’s vision and influence helped shape the brand’s identity and its focus on performance and prestige, laying the foundation for the iconic Mercedes-Benz brand we know today, and solidifying its place in automotive history.

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