Subsidiaries
Mercedes-Benz Accessories GmbH is an independent subsidiary based in Stuttgart-Vaihingen, founded in 2000. Its business include car accessories, personal accessories, Collection and promotional items, and product design.[2]
Mercedes-Benz AMG became a majority owned division of Mercedes-Benz in 1998.[3] The company was integrated into DaimlerChrysler in 1999[4], and became Mercedes-Benz AMG beginning in 1999-01-01.[5]
[edit] Quality
Since its inception, Mercedes-Benz had maintained a reputation for its quality and durability. Objective measures looking at passenger vehicles - such as J.D. Power surveys, demonstrated a downturn in reputation in this criteria in the late 1990s and early 2000s. By mid-2005, Mercedes temporarily returned to the industry average for initial quality, a measure of problems after the first 90 days of ownership, according to J.D. Power.[6] In J.D. Power's Initial Quality Study for the first quarter of 2007, Mercedes showed dramatic improvement by climbing from 25th to 5th place, surpassing quality leader Toyota, and earning several awards for its models.[7] For 2008, Mercedes-Benz's initial quality rating improved by yet another mark, now in fourth place.[8] On top of this accolade, it also received the Platinum Plant Quality Award for its Mercedes’ Sindelfingen, Germany assembly plant.[8] As of 2009, Consumer Reports of the United States has changed their reliability ratings for several Mercedes-Benz vehicles to "average", and recommending the E-Class and the S-Class.[9]
[edit] Motorsport
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Main article: Mercedes-Benz in motorsport
A DMG Mercedes Simplex 1906 in the Deutsches Museum
1957 Mercedes-Benz 300Sc Cabriolet
1959 Mercedes-Benz W120 Model 180
The two companies which were merged to form the Mercedes-Benz brand in 1926 had both already enjoyed success in the new sport of motor racing throughout their separate histories - both had entries in the very first automobile race Paris to Rouen 1894. This has continued, and throughout its long history, the company has been involved in a range of motorsport activities, including sports car racing and rallying. On several occasions Mercedes-Benz has withdrawn completely from motorsport for a significant period, notably in the late 1930s, and after the 1955 Le Mans disaster, where a Mercedes-Benz 300SLR collided with another car and killed more than 80 spectators. Although there was some activity in the intervening years, it was not until 1987 that Mercedes-Benz returned to front line competition, returning to Le Mans, Deutsche Tourenwagen Meisterschaft (DTM), and Formula One with Sauber.
The 1990s saw Mercedes-Benz purchase British engine builder Ilmor (now Mercedes-Benz High Performance Engines), and campaign IndyCars under the USAC/CART rules, eventually winning the 1994 Indianapolis 500 and 1994 CART IndyCar World Series Championship with Al Unser, Jr. at the wheel. The 1990s also saw the return of Mercedes-Benz to GT racing, and the Mercedes-Benz CLK GTR, both of which took the company to new heights by dominating the FIA's GT1 class.
Mercedes-Benz is currently active in three forms of motorsport, Formula Three, DTM and Formula One.
[edit] Formula 1
Main article: Mercedes Grand Prix
In Formula One, the company part-owns Team McLaren, and has supplied the team with engines engineered by Ilmor[10] since 1995. This partnership has brought success, including Drivers Championships for Mika Häkkinen in 1998 and 1999, and for Lewis Hamilton in 2008, as well as a Constructors Championship in 1998. The collaboration with McLaren has been extended into the production of roadgoing cars such as the Mercedes-Benz SLR McLaren.
In 2009, Ross Brawn's newly conceived Formula One team, Brawn GP used Mercedes engines to help win the Constructor's Championship, and Jenson Button to become champion in the F1 Drivers' Championship. It also sold back its 40% stake in McLaren to the McLaren Group and now owns 70% of the Brawn GP team jointly with an Abu Dubai based investment consortium. Brawn GP will be renamed Mercedes Benz Formula 1 Team in 2010.
[edit] Business alliances (Studebaker-Packard Corporation)
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In 1958, Mercedes-Benz entered into a distribution agreement with the Studebaker-Packard Corporation of South Bend, Indiana (USA), makers of Studebaker and Packard brand automobiles. Under the deal, Studebaker would allow Mercedes-Benz access to their U.S. dealer network, handle shipments of vehicles to those dealers, and in return receive compensation for each car sold. Studebaker also was permitted to use the German automaker's name in its advertisements, which stressed Studebaker's quality over quantity.
When Studebaker entered into informal discussions with Franco-American automaker Facel Vega about offering their Facel Vega Excellence model in the United States, Mercedes-Benz objected to the proposal. Studebaker, which needed Mercedes-Benz distribution payments to help stem heavy losses, dropped further action on the plan.
Mercedes-Benz maintained an office within the Studebaker works in South Bend from 1958 to 1963, when Studebaker's U.S. operations ceased. Many U.S Studebaker dealers converted to Mercedes-Benz dealerships at that time. When Studebaker closed its Canadian operation and left the automobile business in 1966, remaining Studebaker dealers had the option to convert their dealerships to Mercedes-Benz dealership agreements.
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