Who owns Mercedes-Benz?

Mercedes-Benz is a luxury car manufacturer based in Stuttgart, Germany. The company was founded in 1926 by Karl Benz and Gottlieb Daimler after they merged their companies to form Daimler-Benz. In May 2022, Mercedes sold the world’s most expensive car for $142 million.

The ultra-rare 1955 Mercedes-Benz 300 SLR Uhlenhaut Coupé broke Ferrari’s previous record of $70 million. The automaker will use the $142 million to launch the Mercedes-Benz Fund to help cash-strapped students. [1]

Mercedes-Benz is one of the world’s best-known auto brands. The automaker offers high-end passenger cars and vans. In Jan 2022, Daimler Mobility AG was rebranded to Mercedes-Benz Mobility AG. This division provides financing, leasing, car rental and subscription, fleet management, insurance brokerage, and digital payment and charging services.

Mercedes-Benz serves all consumers, from celebrities, companies, presidents, and the Pope. One thing that sets Mercedes-Benz apart from other automakers is its innovations. In Sep 2023, Mercedes-Benz presented a concept vehicle at the IAA MOBILITY. The automaker also showcased its new E-Class All-Terrain, all-electric VISION EQXX, and Vision One-Eleven super sports car. But who owns Mercedes-Benz? [2]

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Who is Mercedes-Benz’s Parent Company?

The Mercedes-Benz Group AG owns Mercedes-Benz. The company was founded in 1926 as Daimler-Benz after the merger of Benz & Cie and Daimler Motoren Gesellschaft (DMG). In 1998, Daimler-Benz rebranded to Daimler AG to reflect its expanding portfolio.

Mercedes-Benz is the most recognized Daimler AG brand. However, Daimler AG also owned Detroit Diesel, Freightliner, Thomas Built Buses, Mercedes-Benz Bank, and Smart Automobile. [3]

Mercedes-Benz’s parent company realigned its organizational structure in the past 2 years to enhance growth. In Feb 2022, Daimler AG was renamed Mercedes-Benz Group AG. The move came a year after the company spun off its truck and bus division. These changes can help the Mercedes brand unlock shareholder value. [4]

Mercedes-Benz Group AG offers auto financing and leasing through Mercedes-Benz Bank. The subsidiary was founded in 2001 as DaimlerChrysler Bank and obtained a banking license in 2002. In 2008, the global financial services provider changed its name to Mercedes-Benz Bank. It has over 1,500 employees and serves 1 million customers. In Jul 2023, Mercedes-Benz Bank changed its board and extended Chairman Benedikt Schell’s tenure. [5]

Ownership History

Mercedes-Benz traces its origins to the first internal combustion engine in Karl Benz’s Benz Patent Motorwagen. The engine was patented in Jan 1886 by Karl Benz, who later partnered with Gottlieb Daimler to establish the Daimler-Benz company. Engineer Wilhelm Maybach and entrepreneur Emil Jellinek joined Daimler-Benz to help the founders manufacture and market automobiles. The company adopted the Mercedes brand, named after Emil’s daughter, Mercedes Jellinek.

Daimler-Benz manufactured the first Mercedes-Benz branded vehicles. From 1937 onward, the company switched to war production. Daimler-Benz reverted to manufacturing luxury and commercial vehicles after WWII. In 1958, the company partnered with Studebaker to sell Mercedes cars in the US.

Daimler-Benz expanded its portfolio through strategic acquisitions, including Freightliner, Thomas Built Buses, and Detroit Diesel. In 1998, Daimler-Benz was rebranded to Daimler AG. The brand revealed the Freightliner SuperTruck II concept vehicle in Feb 2023. [6]

Daimler AG was one of the world’s largest manufacturers of luxury and commercial vehicles. In 2019, Daimler AG spun off the Mercedes-Benz brand to create a wholly-owned subsidiary to manage its car and van business.

However, Mercedes-Benz-branded trucks and buses remained part of the Daimler Truck AG division. In Dec 2021, Daimler Truck was launched on the Frankfurt Stock Exchange. It is one of the world’s largest commercial vehicle manufacturers, with over 40 locations and 100,000 employees. [7]

The spin-off of Daimler Truck allows the new Mercedes-Benz Group AG to increase its focus on high-end cars and vans. Although Daimler was split into two independent companies, Mercedes-Benz Group still holds a 35% stake in Daimler Truck Holding AG. [8]

The Mercedes-Benz Group AG is the world’s most valuable luxury car manufacturer. The group owns iconic auto brands, including Mercedes-Benz, Mercedes-AMG, Mercedes-Maybach, and Mercedes-EQ. Since 2019, Mercedes-Benz has been expanding its Stuttgart-Untertürkheim plant to realign its production towards electric vehicles.

Mercedes-Benz plans to go fully electric within a decade. In Dec 2022, the company agreed to expand production capacities for electric drive units. Mercedes-Benz seeks to double the output at the Untertürkheim plant to 1 million electric vehicles. The facility has 16,000 employees and produces batteries and axles for plug-in hybrids and electric Mercedes-EQ models. It also undertakes the group’s powertrain research and development. [9]

Ownership Structure

Mercedes-Benz was founded to revolutionize automobile production. As of Sep 2023, the company’s owners held 1,069,837,447 Mercedes-Benz shares. The Chinese BAIC Group is the largest Mercedes individual shareholder, with 9.98 % of shares. Li Shufu has been investing in Mercedes-Benz since 2018 through Tenaciou3 Prospect Investment Limited. The Chinese investor is Mercedes’ second-largest shareholder, with 9.69% of the stock. [10]

Since 1974, the Kuwait Investment Authority (KIA) has increased its stake in the Mercedes-Benz Group AG to 6.8%.

In Mar 2023, KIA announced plans to sell 20 million Mercedes shares for $1.5 billion. The move will reduce KIA’s stake in the German luxury carmaker to around 5%. However, KIA will retain its position as Mercedes-Benz’s third-largest shareholder. [11]

Mercedes-Benz is owned by institutional, strategic, and retail investors from different regions globally. In Sep 2023, US investors held 18.34% of the company, Germans had 7.51%, and Kuwaitis had 5.57%. Asians control 20.96%, Europe excluding Germany has 17.4, and retail investors in other regions have 30.22%.

Some firms invest in the Mercedes-Benz Group because they have entwined business interests. For example, Chinese electric vehicle startup Nio held tie-up talks with Mercedes-Benz in Sept 2023.

The deal will allow the two companies to exchange technology and invest in each other’s ventures. As China’s 9^th largest electric and hybrid cars manufacturer, Nio can help Mercedes-Benz navigate trade barriers in the Chinese market. [12]

Mercedes-Benz’s top 9 shareholders account for around 51% of the register. As of Nov 2023, companies held 9.9%-10% of the company’s shares versus 36% controlled by the general public, including retail investors. This ratio balances out all shareholders’ interests without suppressing their voting rights. [13]

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