decars1-3, Exercise 1: The Daimler-Benz merger

Model answer (check the details):

Why they merged: Daimler-Motoren-Gesellschaft and Benz & Cie were rivals since the 1880s. The hyperinflation of 1923 and the economic crisis of the early 1920s hurt German manufacturing, and demand for expensive cars was weak. Combining reduced competition, shared costs and allowed a stronger position, and the two had already begun to cooperate in the mid-1920s.

What the brand combined: the merger in 1926 formed Daimler-Benz and the name Mercedes-Benz, joining the Mercedes name (from the 1901 cars named for Emil Jellinek's daughter, used by Daimler) with the Benz name. The three-pointed star became the emblem.

Caution: company histories present the merger as a clean union; the circumstances involved banks and negotiations, and independent histories should be checked.