Report of Mercedes-Benz Automotive Company

Prepared for Sir Tauseef Ahmad

Prepared by Ahmed Ali

Submitted on 10, Nov, 2010

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Ahmed Ali

CIIT Abbottabd

Interoffice Communication

Date : Nov, 10, 2010

To : Sir Tauseef Ahmed

From : Ahmed Ali

Subject : Long Report on Mercedes-Benz

With regards first of all I want to thank you for giving me this opportunity to
write the report on Mercedes-Benz. For this purpose I not only searched the web but also
various books and magazines. After doing a lot of research I find out that Mercedes-Benz
is one of the leading automotive industries which is famous all around the world for its
elegance, style and luxury. The company should focus on production of cars which
should provide high gas mileage as due tot this factor company had faced many losses,
and cars with low CO2 emission as people like car which are less harmfull to ozone. The
company should set prices of cars normal so that it will improve its sales and hence will
generate profit to the company and become number one in its industry around the world.
If you have any question or quarry regarding this topic I would be pleased to help
you out.

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Table of content

Contents PAGE#

Executive summary………………………………………………… 5
Mercedes-Benz……………………………………………………... 6
History …………………………………………………………… 6
Business Alliance………………………………………………. 6
Studebaker-Packard………………………………................ 6
Subsidiaries…………………………………….................... 7
Quality Ranking………………………………………………… 7
Corporate average fuel economy……………………………….. 7
Production…………………………………………………………... 8
Models………………………………………………………. ……... 8
Current model range…………………………………………….. 8
Passenger cars……………………………………………...... 9
Trucks………………………………………………………... 9
Buses and vans……………………………………………..... 9
Significant models produced……………………………………. 10
McLaren cars………………………………………………... 11
Car nomenclature………………………………………………... 12
Electric vehicles…………………………………………………. 12
Bicycles………………………………………………………...... 13
Motorsport………………………………………………………...…. 13
Formula 1……………………………………………………...…. 14
Tuners…………………………………………………………...……. 15
In house………………………………………………………..…. 15
Aftermarket tuners…………………………………………...….... 16
Noted employees………………………………………………...……. 16
Innovations……………………………………………………...…….. 16
Robot Cars ……………………………………………...……….... 18

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References …………………………………………...…………... 19

Executive Summary

Mercedes-Benz is an automotive company founded in 1981. There founders were

Karl Benz and Gottlieb Daimler. Its headquaters is located in Stuttgart Germany. The
company produces automobiles, trucks, buses, international combustion engines, sports
car and bicycles. Mercedes-Benz is also being manufactured or assembled in more than
twenty four countries. It has introduced many technological and safety innovations which
most of the other companies are copying. Mercedes-Benz is one of the most well-known
and established automotive brands in the world, and is also the world's oldest automotive
brand still in existence today.

Mercedes-Benz is prducing variety of cars ranging from passenger cars to F1 cars.

It has a special independent tuners which further modify Mercedes-Benz for customers
who want high performance and quality and specially the engine is hand built by these
tunners. One of the most recognize tuners of Mercedes-Benz are AMG and Brabus.
Mercedes-Benz has entered into the manufacturing of robot cars along time ago which
has strenghten the company and made famous for its unique charcteristic.

The company is on the fourth number in its quality ranking as Mercedes-Benz is

famous for its elegance and quality. The company had faced several problems in the past
due to low gas mileage and excess CO2 emisson. As the company is now focussing on
high gas mileage and passenger safety which had helped the company to regain one of
the top ranking among the world car competition. Mercedes-Benz is also participating in
F1 racing to attract more customers and show them the power, realibility and quality of
Mercedes-Benz.

The company should set prices or produce such models of cars such that every
customer can afford it as there are a lot of lover’s of Mercedes-Benz. This will not only
help the company to compete its rivals but will earn more profit and become the best car
producers in the world.

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Mercedes-Benz

Mercedes-Benz is a German manufacturer of automobiles, buses, coaches, and

trucks. It is currently a division of its parent company, Daimler AG (formerly Daimler
Chrysler AG), after previously being owned by Daimler-Benz. Mercedes-Benz has its
origins in Karl Benz's creation of the first petrol-powered car, the Benz Patent
Motorwagen, patented in January 1886, and by Gottlieb Daimler and engineer Wilhelm
Maybach's conversion of a stagecoach by the addition of a petrol engine later that year.
The Mercedes automobile was first marketed in 1901 by Daimler Motoren Gesellschaft.
The first Mercedes-Benz brand name vehicles were produced in 1926, following the
merger of Karl Benz's and Gottlieb Daimler's companies into the Daimler-Benz
company. Mercedes-Benz has introduced many technological and safety innovations that
have become common in other vehicles several years later. Mercedes-Benz is one of the
most well-known and established automotive brands in the world, and is also the world's
oldest automotive brand still in existence today.

History

Business alliances

Studebaker-Packard

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 its
dealer network in the U.S., handle shipments of vehicles to the dealers, and in return,
receive compensation for each car sold. Studebaker also was permitted to use the German

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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 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.

Subsidiaries

Mercedes-Benz AMG became a majority owned division of Mercedes-Benz in 1998. The

company was integrated into DaimlerChrysler in 1999, and became Mercedes-Benz
AMG beginning on 1 January 1999.

Quality rankings

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. 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. For 2008, Mercedes-Benz's
initial quality rating improved by yet another mark, now in fourth place. On top of this
accolade, it also received the Platinum Plant Quality Award for its Mercedes’
Sindelfingen, Germany assembly plant. As of 2009, Consumer Reports of the United
States has changed their reliability ratings for several Mercedes-Benz vehicles to
"average", and are recommending the E-Class and the S-Class.

Corporate average fuel economy

In the United States, Mercedes-Benz was assessed a record US$30.66 million for their
decision to not meet the federal corporate average fuel economy standard in 2009.
Certain Mercedes-Benz cars including the S550, and all AMG models sold in the United
States also face an additional gas guzzler tax.

In 2008, Mercedes had the worst CO2 average of all major European manufacturers,
ranking 14th out of 14 manufacturers. Mercedes was also the worst manufacturer in 2007

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and 2006 in terms of average CO2 levels, with 181 g and 188 g of CO2 emitted per km,
respectively.

Production

Besides its native Germany, Mercedes-Benz vehicles are also manufactured or assembled
in:

• Argentina (buses, trucks and • Mexico - Mercedes Benz de Mexico is

the Sprinter van. The first Mercedes's largest foreign branch by
Mercedes-Benz factory revenue, number of sales, vehicles
outside of Germany) manufactured and total employees and
• Austria (G-Class) covers most of the Latin American and
• Bosnia and Herzegovina North American market.
• Brazil Manufacture the • Nigeria (buses, trucks, utility motors and the
trucks, buses, C-Class, GL- van Sprinter)
Class, CLS-Class. • Philippines - Most classic Mercedes-Benz
Established in 1956. cars are plying through Manila.
• Canada • Spain (Vitoria)
• Egypt: Egyptian German • South Africa
Automotive Company • South Korea (Mercedes-Benz Musso and
• Ghana (buses, trucks, taxis) MB100 models manufactured by
• Hungary (construction of a SsangYong Motor Company)
new plant in the country • Thailand (assembly of C, E and S class
announced on 18 June 2008, vehicles by the Thonburi Group)
for the next generation A- • Turkey
and B-Class) • United Kingdom (The SLR sports car is
• India built at the McLaren Technology Centre in
• Indonesia Woking).Brackley, Northamptonshire,
• Iran United Kingdom Mercedes Grand Prix
Factory
• Malaysia • USA The Mercedes-Benz M-Class Sport
Utility, the R-Class Sport Tourer, and the
full-sized GL-Class Luxury Sport Utility
Vehicle are all built at the Mercedes-Benz
production facility near Tuscaloosa,
Alabama.

• Vietnam

Models

Current model range

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Mercedes-Benz has a full range of passenger, light commercial and heavy commercial
equipment. Production is on a global basis. The Smart marque of city cars has also been
part of the Mercedes-Benz Group since 1994.

Passenger cars

The following passenger vehicles were in production in 2010:

• A-Class - subcompact
• B-Class - people carrier
• C-Class - sedan (saloon), sports coupé (CLC), and estate
• CL-Class - coupé
• CLK-Class - coupé, convertible
• CLS-Class - 4 door coupé
• E-Class - sedan (saloon), coupé, convertible , and estate
• G-Class - 4WD cross-country vehicle
• GL-Class - SUV
• GLK-Class - SUV
• M-Class - SUV
• R-Class - crossover minivan
• S-Class - sedan (saloon)
• SL-Class - roadster
• SLK-Class - roadster
• SLR McLaren - hardtop grand tourer
• SLS AMG - luxury grand tourer

Trucks

Mercedes-Benz is one of the world's largest manufacturers of trucks.

Buses and vans

Mercedes-Benz buses

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Mercedes-Benz Vario

Mercedes-Benz also produces buses, mainly for Europe and Asia. Mercedes-Benz
produces a range of vans. The first factory to be built outside Germany after WWII was
in Argentina. It originally built trucks, many of which were modified independently to
buses, popularly named Colectivo. Today, it builds buses, trucks and the Sprinter van.

Significant models produced

• 1928: SSK racing car

• 1930: 770 "Grosser Mercedes" state and ceremonial car
• 1934: 500 K
• 1936: 260 D World's first diesel production car
• 1936: 170
• 1938: W195 Speed Record-breaker
• 1951: Mercedes-Benz 300, knownly as "Adenauer Mercedes"
• 1953: "Ponton" models
• 1954: 300SL "Gullwing"
• 1959: "Fintail" models
• 1960: 220SE Cabriolet
• 1963: 600 "Grand Mercedes"
• 1963: 230SL "Pagoda"
• 1965: Mercedes-Benz S-Class
• 1966: 300SEL 6.3
• 1968: W114 "new generation" compact cars
• 1969: C111 experimental vehicle
• 1972: Mercedes-Benz W107 350SL
• 1974: 450SEL 6.9
• 1974: 240D
• 1976: 300D
• 1979: 500SEL and G-Class

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 • 1983: 190E 2.3-16
• 1986: First 'E-Class'
• 1991: 600SEL
• 1993: First 'C-Class'
• 1995: First 'Joint Mercedes-Benz & AMG' (C43 AMG)
• 1995: Mercedes-Benz SL73 AMG, 7.3 V12 (biggest engine ever put in a
Mercedes-Benz)
• 1996: Mercedes-Benz Renntech E7.4RS
• 1996: Mercedes-Benz CLK
• 1997: Mercedes-Benz SLK
• 1997: Mercedes-Benz M-Class
• 2004: Mercedes-Benz SLR McLaren
• 2004: Mercedes-Benz CLS
• 2007: E320, GL320 Bluetec, ML320 Bluetec, R320 Bluetec
• 2010: Mercedes-Benz SLS AMG

McLaren cars

Silver SLR McLaren on display at the 2006 European Motor Show in Brussels

Mercedes-Benz has also produced a limited-production sports car with McLaren Cars, an
extension of the collaboration by which Mercedes engines are used by the Team
McLaren-Mercedes Formula One racing team, which is part owned by Mercedes. The
2003 Mercedes-Benz SLR McLaren has a carbon fibre body with a 5.4 litre V8
supercharged engine. This is the same cylinder block as featured in SL55 AMG and the

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CLS55 AMG, though modified to give 460 kilowatts (625 PS; 617 bhp) and 780 newton
metres (575 ft·lbf) of torque. The SLR has a maximum speed of 337 kilometres per hour
(209.4 mph) and costs approximately US$500,000. Due to European pedestrian-
protection regulation, McLaren decided to cease production of the SLR in 2009.[

Car nomenclature

In 1994 (starting with the 1994 models), the traditional nomenclature of Mercedes-Benz
vehicles changed. Since the early days of the company, the name would be in the form of
(for example) 500E where the engine displacement made up the first three numbers and
the last letter(s) represented the type of engine and/or chassis; for example: E for fuel
injection (German: Einspritzung), D for Diesel, L for long-wheelbase, etcetera.

In 1994, this was altered so that the prefix reflected the model or Class, German: Klasse,
in Mercedes-Benz terminology, and a number for the engine displacement. The suffix
was retained in some cases, for example L for long wheelbase, and CDI for Diesel (CDI
= Common-rail Direct Injection). Thus, the 500E in the example above became the E500
("E-Klasse", 5 litres displacement). It should also be noted that while in the past the
model number generally accurately reflected the actual engine displacement, this is
currently not always the case — for example the E200 CDI and E220 CDI actually both
have a 2.1 litre displacement and the C240 actually has a 2.6 litre engine.

Electric vehicles

At the 2007 Frankfurt motor show, Mercedes-Benz showed seven hybrid models,
including the F700 concept car, which combined hybrid drive with the innovative
DiesOtto engine. On the other hand, Mercedes-Benz says it will have a demonstration
fleet of practical, if small, electric vehicles on the road in two to three years, from 2008.
Mercedes-Benz S400 BlueHYBRID will be launched in 2009, and will be the first
production automotive hybrid in the world to use a lithium-ion battery. In 2009, the S400
hybrid saloon is scheduled to go on sale.

Mercedes-Benz BlueZERO cars were introduced in the 2009 North American

International Auto Show.Mercedes has showed in 2009 the Vision S500 PHEV petrol
concept vehicle with a 19 miles (31 km) all-electric range and CO2 emissions of
74 grams/km in the New European Driving Cycle.

Mercedes-Benz and Smart are preparing for the widespread uptake of electric vehicles
(EVs) in the UK by beginning the installation of recharging points across their dealer
networks. So far 20 Elektrobay recharging units, produced in the UK by Brighton-based
Elektromotive, have been installed at seven locations as part of a pilot project, and further
expansion of the initiative is planned later 2010.

In mid-2010, production commenced on the Vito E-Cell all-electric van. Mercedes

expects 100 vehicles to be produced by the end of 2010 and a further 2000 by the end of
2011.

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Bicycles

Mercedes-Benz Accessories GmbH introduced 3 new bicycles in 2005, named Automatic

Bike from upwards of USD$2699, Fitness Bike from upwards of USD$3999, Mountain
Bike from upwards of USD$5399 (As were the Retail Prices recorded from immediate
release date). The bikes are sold in Australia, Germany, and Russia. List of bicycles:

• Mercedes-Benz Automatic Bike

• Mercedes-Benz Carbon Bike
• Mercedes-Benz Fitness Bike
• Mercedes-Benz Hybrid Bike
• Mercedes-Benz Mountain Bike
• Mercedes-Benz Street Bike

Motorsport

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.

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Mercedes-Benz is currently active in three forms of motorsport, Formula Three, DTM
and Formula One.

Formula 1

Mercedes-Benz took part in the world championship in 1954 and 1955, but despite being
successful with two championship titles for Juan-Manuel Fangio, the company left the
sport after just two seasons.

Mercedes-Benz returned as an engine supplier in the 1990s and part-owned Team

McLaren for some years, to which it has supplied engines engineered by Ilmor since
1995. This partnership brought success, including driver’s championships for Mika
Häkkinen in 1998 and 1999 and for Lewis Hamilton in 2008, as well as a constructor’s
championship in 1998. The collaboration with McLaren has been extended into the
production of roadgoing cars such as the Mercedes-Benz SLR McLaren.

In 2007 McLaren and Mercedes was fined a record $100 Million for stealing confidential
Ferrari technical data.

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. At the end of the season, Mercedes-Benz sold
back its 40% stake in McLaren to the McLaren Group and bought 70% of the Brawn GP
team jointly with an Abu Dubai based investment consortium. Brawn GP was renamed
Mercedes GP for the 2010 season and is, from this season on, a works team for
Mercedes-Benz.

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Tuners

Several companies have become car tuners (or modifiers) of Mercedes Benz, in order to
increase performance and/or luxury to a given model.

In house

AMG is Mercedes-Benz's in-house performance-tuning division, specializing in high-

performance versions of most Mercedes-Benz cars. AMG engines are all hand-built, and
each completed engine receives a tag with the signature of the engineer who built it.
AMG has been wholly owned by Mercedes-Benz since 1999. On the 2009 IAA in
Frankfurt, Germany, Mercedes officially introduced the SLS AMG, a revival of the
300SL Gullwing, and the first car to be entirely developed by AMG.

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Aftermarket tuners

There are numerous independent tuners:

• Brabus
• Carlsson
• Kicherer
• Kleemann
• Lorinser
• Renntech
• MKB
• Fluid MotorUnion

Noted employees

• Béla Barényi - car safety pioneer and original designer of the Volkswagen Beetle
concept
• Nicholas Dreystadt - Cadillac manager
• Juan Manuel Fangio - considered by many to be the best F1 driver in history
• Wilhelm Maybach - automotive pioneer
• Stirling Moss - F1 driver
• Ferdinand Piëch - Volkswagen and Porsche manager
• Ferdinand Porsche - founder of Porsche
• Rudolf Uhlenhaut - designer of the Mercedes-Benz 300SL
• Bruno Sacco - automotive designer
• Mika Häkkinen - F1 driver, World Champion 1998-1999
• Lewis Hamilton - F1 driver, World Champion 2008
• Jenson Button - F1 driver World Champion 2009
• Michael Schumacher - F1 driver world champion (with other teams) 1994-1995,
2000–2004
• Adolf Eichmann - Nazi Criminal (worked in Argentine division after WWII)

Innovations

Numerous technological innovations have been introduced on Mercedes-Benz

automobiles throughout the many years of their production, including:

• The internal combustion engined automobile was developed independently by

Benz and Daimler & Maybach in 1886
• Daimler invented the honeycomb radiator of the type still used on all water-
cooled vehicles today
• Daimler invented the float carburetor which was used until replaced by fuel
injection
• The "drop chassis" - the car originally designated the "Mercedes" by Daimler was
also the first car with a modern configuration, having the carriage lowered and set

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 between the front and rear wheels, with a front engine and powered rear wheels.
All earlier cars were "horseless carriages", which had high centres of gravity and
various engine/drive-train configurations
• The first passenger road car to have brakes on all four wheels (1924)
• The "safety cage" or "safety cell" construction with front and rear crumple zones
was first developed by Mercedes-Benz in 1951. This is considered by many as the
most important innovation in automobile construction from a safety standpoint.
• In 1959, Mercedes-Benz patented a device that prevents drive wheels from
spinning by intervening at the engine, transmission, or brakes. In 1987, Mercedes-
Benz applied its patent by introducing a traction control system that worked under
both braking and acceleration
• Traction control and airbags in the European market were Mercedes-Benz
innovations. These technologies were introduced in 1986, and 1980 respectively
• Mercedes-Benz was the first to introduce pre-tensioners to seat belts on the 1981
S-Class. In the event of a crash, a pre-tensioner will tighten the belt
instantaneously, removing any 'slack' in the belt, which prevents the occupant
from jerking forward in a crash
• In September 2003, Mercedes-Benz introduced the world's first seven-speed
automatic transmission called '7G-Tronic'
• Electronic Stability Programme (ESP), brake assist, and many other types of
safety equipment were all developed, tested, and implemented into passenger cars
—first—by Mercedes-Benz. Mercedes-Benz has not made a large fuss about its
innovations, and has even licensed them for use by competitors — in the name of
improving automobile and passenger safety. As a result, crumple zones and anti-
lock brakes (ABS) are now standard on all modern vehicles.

Mercedes M156 engine

• The most powerful naturally aspirated eight cylinder engine in the world is the
Mercedes-AMG, 6208 cc M156 V8 engine. The V8 engine is badged '63 AMG',
and replaced the '55 AMG' M113 engine in most models. The M156 engine
produces up to 391 kW (532 PS; 524 bhp), and although some models using this
engine do have this output (such as the S63 and CL63 AMGs), specific output
varies slightly across other models in the range

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 • The (W211) E320 CDI which has a variable geometry turbocharger (VTG)
3.0 litre V6 common rail diesel engine (producing 224-horsepower), set three
world endurance records. It covered 100,000 miles (160,000 km) in a record time,
with an average speed of 224.823 kilometres per hour (139.70 mph). Three
identical cars did the endurance run (one set above record) and the other two cars
set world records for time taken to cover 100,000 kilometres (62,137 mi) and
50,000 miles (80,000 km) respectively. After all three cars had completed the run,
their combined distance was 300,000 miles (480,000 km) (all records were FIA
approved).
• Mercedes-Benz pioneered a system called Pre-Safe to detect an imminent crash -
and prepares the car's safety systems to respond optimally. It also calculates the
optimal braking force required to avoid an accident in emergency situations, and
makes it immediately available for when the driver depresses the brake pedal.
Occupants are also prepared by tightening the seat belt, closing the sunroof and
windows, and moving the seats into the optimal position.

Half a century of vehicle safety innovation helped win Mercedes-Benz the Safety Award
at the 2007

Robot Cars

In the 1980s, Mercedes built the world's first robot car, together with the team of
Professor Ernst Dickmanns at Bundeswehr Universität München. Partially encouraged
by Dickmanns' success, in 1987 the European Union's EUREKA programme initiated the
Prometheus Project on autonomous vehicles, funded to the tune of nearly 800 million
Euros. A culmination point was achieved in 1995, when Dickmanns' re-engineered
autonomous S-Class Mercedes took a long trip from Munich in Bavaria to Copenhagen in
Denmark, and back. On highways, the robot achieved speeds exceeding 175 kilometres
per hour (109 mph) (permissible in some areas of the German Autobahn). The car's
abilities has heavily influenced robot car research and funding decisions worldwide.

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