Daimler Motoren Gesellschaft - Daimler-Benz and The Mercedes-Benz Brand (1926)

Daimler-Benz and The Mercedes-Benz Brand (1926)

For the two separate businesses to survive the financial problems of the day, in 1919, Benz & Cie. proposed a merger, but DMG formally rejected it in December. Then, as the German crisis worsened, the struggling firms met again in 1924 and signed an Agreement of Mutual Interest, valid until the year 2000. They standardized design, production, purchasing, sales, and advertising—marketing their car models jointly—although keeping their respective brands.

On June 28, 1926, DMG and Benz & Cie. merged into Daimler-Benz AG, establishing its headquarters in the Untertürkheim factory.

Their automobiles were named Mercedes Benz, in honour of DMG's most important car model and the last name of Karl Benz. Its new trademark consisted of a three-pointed star surrounded by the traditional laurels of Karl Benz's logo and labeled Mercedes Benz. The next year, 1927, the number of units sold tripled to 7,918, and diesel truck production was launched.