Mercedes-Benz: 100 years of star on the hood

“The Mercedes star is one of the best-known trademarks in the world,” says Florian Stahl, professor of marketing at the University of Mannheim. The strength lies in its simplicity, timelessness and high recognition. On June 28, 1926, Daimler-Benz AG was created through the merger of the companies founded by Carl Benz and Gottlieb Daimler. This is how the Mercedes-Benz brand was born. Almost two months later, on August 21, 1926, the company registered its trademark: three-pointed star, laurel wreath, plus the words Mercedes and Benz. The fact that the logo has only been changed carefully over the decades has contributed significantly to its strong anchoring.

Mercedes-Benz also benefits from its historical role as a car pioneer, says Stahl. The company has consistently stood for engineering, quality and innovation for decades. This year the group is also celebrating “140 years of innovation” – in 1886 Carl Benz registered his patent for a “vehicle powered by a gas engine”.

Luxury apartments

The brand “stands for pioneering spirit, excellent engineering and timelessly elegant design,” says Christina Schenck, head of marketing at the Stuttgart DAX group. They want to “be a reliable and trusted reference point” for customers beyond pure mobility. This is exactly where real estate projects come into play.

“Brand licensing projects in the real estate sector are a strategically relevant business area for us, with which we create new emotional points of contact with the brand,” says Schenck. When it comes to living, Mercedes will continue to focus aggressively on luxury in the future. “In Dubai, for example, Mercedes-Benz-Places-Binghatti City is growing on a large scale as a “city within the city”, which is intended to transfer the Mercedes-Benz design philosophy and the brand-typical feeling to an entire urban district.

Pressure in the core business

The people of Stuttgart have great concerns about their core business. Mercedes boss Ola Källenius had pursued a luxury strategy. In the 2023 annual report, the passenger car strategy said: “Thinking and acting as a luxury brand.” There is no longer any talk of that today. The Swabians have corrected their course. “Focusing on top models, i.e. on fewer cars but on those with higher profit margins, didn’t work well,” says car expert Helena Wisbert, professor of automotive economics at the University of Wolfsburg. Mercedes is a volume manufacturer and not a factory. The group is under pressure.

In 2025, profits fell by almost half to 5.33 billion euros. Tariffs, negative exchange rate effects and intense competition in China had a negative impact on results. Business had already gone worse in 2024. The Swabians responded with an austerity program. The share price is currently at a five-year low of around 45 euros.

Meanwhile, 40 new models are expected to come onto the market by 2027. Källenius speaks of the largest technology and product offensive in the company’s history. Especially when it comes to electromobility, people want to be at the forefront.