MERCEDES BENZ BLOG

Karl Benz, Bertha Benz, and their son, Eugen, moved 10 kilometres (6.2 mi) east of Mannheim to live in nearby Ladenburg, and solely with their own capital, founded the private company, C. Benz Sons (German: Benz Söhne) in 1906, producing automobiles and gas engines. The latter type was replaced by petrol engines because lack of demand.

Logo on family held business production vehicles

This company never issued stocks publicly, building its own line of automobiles independently from Benz & Cie., which was located in Mannheim. The Benz Sons automobiles were of good quality and became popular in London as taxis.
In 1912, Karl Benz liquidated all of his shares in Benz Sons and left the family-held company in Ladenburg to Eugen and Richard, but he remained as a director of Benz & Cie.
During a birthday celebration for him in his home town of Karlsruhe on November 25, 1914, the seventy-year-old Karl Benz was awarded an honorary doctorate by his alma mater, the Karlruhe University, thereby becoming—Dr. Ing. h. c. Karl Benz.

1923 Benz "Teardrop" aerodynamic racecar

Almost from the very beginning of the production of automobiles, participation in sports car racing became a major method to gain publicity for manufacturers. At first, the production models were raced and the Benz Velo participated in the first automobile race: Paris to rouen . Later, investment in developing racecars  for motorsports produced returns through sales generated by the association of the name of the automobile with the winners. Unique race vehicles were built at the time, as seen in the photograph here of the Benz, the first mid-engine and aerodynamically designed, Tropfenwagen, a "teardrop" body introduced at the 1923 European at Monza
In the last production year of the Benz Sons company, 1923, three hundred and fifty units were built. During the following year, 1924, Karl Benz built two additional 8/25 hp units of the automobile manufactured by this company, tailored for his personal use, which he never sold; they are still preserved.

Toward Daimler-Benz and the first Mercedes-Benz in 1926

Last home of Karl and Bertha Benz, now the location of the Gottlieb Daimler and Karl Benz Foundation in LadenBurg, in Baden-Wurrtengerb

The German economic crisis worsened. In 1923 Benz & Cie. produced only 1,382 units in Mannheim, and DMG made only 1,020 in Stuttgart. The average cost of an automobile was 25 million marks because of rapid inflation. Negotiations between the two companies resumed and in 1924 they signed an "Agreement of Mutual Interest" valid until the year 2000. Both enterprises standardized design, production, purchasing, sales, and advertising—marketing their automobile models jointly—although keeping their respective brands.
On June 28, 1926, Benz & Cie. and DMG finally merged as the Daimles -Benz company, baptizing all of its automobiles, Mercedes Benz, honoring the most important model of the DMG automobiles, the 1902 Mercedes 35 hp, along with the Benz name. The name of that DMG model had been selected after ten-year-old Mercedes Jellinek, the daughter of Emil Jellineck who had set the specifications for the new model. Between 1900 and 1909 he was a member of DMG's board of management and long before the merger Jellinek had resigned.
Karl Benz was a member of the new Daimler Benz board of management for the remainder of his life. A new logo was created, consisting of a three pointed star (representing Daimler's motto: "engines for land, air, and water") surrounded by traditional laurels from the Benz logo, and the brand of all of its automobiles was labeled Mercedes Benz. Model names would follow the brand name in the same convention as today.
The next year, 1927, the number of units sold tripled to 7,918 and thediesel line was launched for truck production. In 1928 the Mercedes Benz SSK was presented.
On April 4, 1929, Karl Benz died at home in Ladenburg at the age of eighty-four from bronchial infflamation. Until her death on May 5, 1944, Bertha Benz continued to reside in their last home. Members of the family resided in the home for thirty more years. The Benz home now has been designated as historic and is used as a scientific meeting facility for a nonprofit foundation, the Gottlieb Daimler and Karl Benz Foundation, that honors both Bertha and Karl Benz for their roles in the history of automobiles.