By BMW and Mercedes-Benz are two of the most iconic and influential brands in the automotive industry. Their rivalry dates back to the early days of the motor car, and has shaped the development and innovation of luxury and performance vehicles for over a century. From their origins in Germany to their global expansion and domination, these two brands have been competing and challenging each other in every aspect of the automotive business. Here is a comprehensive guide to the history and evolution of the BMW-Mercedes rivalry.
BMW and Mercedes-Benz have different and distinct origins, but they both emerged from the same country and the same era. BMW, which stands for Bayerische Motoren Werke, was founded in 1916 as an aircraft engine manufacturer. It later diversified into motorcycles, household appliances, and farming equipment, before producing its first car, the Dixi, in 1928. Mercedes-Benz, on the other hand, was formed in 1926 by the merger of two companies, Daimler-Motoren-Gesellschaft (DMG) and Benz & Cie. DMG was founded in 1890 by Gottlieb Daimler and Wilhelm Maybach, while Benz & Cie was founded in 1883 by Karl Benz. Both companies were pioneers in the invention and development of the motor car, and their products bore the name Mercedes, after the daughter of Emil Jellinek, a wealthy businessman and racing enthusiast who commissioned and marketed DMG’s cars.
The Rise of BMW and Mercedes-Benz
BMW and Mercedes-Benz both faced challenges and difficulties in the aftermath of World War II, as their factories were damaged and their markets were disrupted. However, they both managed to recover and rebuild their businesses, and to establish themselves as leading automakers in the global market. BMW achieved a breakthrough in 1959, when it introduced the 700, a small and affordable car that saved the company from bankruptcy and paved the way for its future success. Mercedes-Benz, meanwhile, continued to produce high-quality and prestigious cars, such as the 300 SL Gullwing and the 600 Pullman, that earned it a reputation as a symbol of luxury and status.
The Competition and Innovation of BMW and Mercedes-Benz
BMW and Mercedes-Benz began to compete more directly and intensely in the 1960s and 1970s, as they both expanded their product range and targeted the same segments and customers. BMW launched the Neue Klasse (New Class) in 1962, a series of compact and sporty sedans that defined the brand’s identity and philosophy. Mercedes-Benz responded with the W114/W115 in 1968, a series of mid-sized sedans that offered comfort and reliability. BMW also introduced the 2002 in 1968, a two-door coupe that became a cult classic and a precursor to the 3 Series, which debuted in 1975. Mercedes-Benz countered with the W123 in 1976, a series of executive sedans that became the best-selling model in the brand’s history.
BMW and Mercedes-Benz also competed and innovated in the fields of performance and motorsport, as they both established their own racing and tuning divisions. BMW founded BMW Motorsport in 1972, which developed the legendary M models, such as the M1, the M3, and the M5. Mercedes-Benz partnered with AMG in 1990, which produced the AMG models, such as the 190 E 2.3-16, the E 55, and the SL 55. Both brands also participated and excelled in various racing competitions, such as Formula One, touring car, rally, and endurance racing.
The Globalization and Diversification of BMW and Mercedes-Benz
BMW and Mercedes-Benz continued to grow and evolve in the 1980s and 1990s, as they both pursued globalization and diversification strategies. BMW acquired the Rover Group in 1994, which included the brands of Land Rover, Mini, and MG. However, the acquisition proved to be unsuccessful and costly, and BMW sold most of the Rover Group in 2000, retaining only the Mini brand. Mercedes-Benz, on the other hand, merged with Chrysler in 1998, forming the DaimlerChrysler AG. The merger was also problematic and unprofitable, and DaimlerChrysler split in 2007, with Mercedes-Benz becoming part of the Daimler AG.
BMW and Mercedes-Benz also expanded their product portfolio and entered new segments and markets. BMW launched the X Series in 1999, a series of SUVs that appealed to the growing demand for crossovers and off-roaders. Mercedes-Benz followed suit with the M-Class in 1997, and later the G-Class, the GL-Class, and the GLK-Class. BMW also introduced the Z Series in 1989, a series of roadsters and coupes that offered fun and style. Mercedes-Benz countered with the SLK-Class in 1996, and later the SL-Class, the CLK-Class, and the CLS-Class.
The Future and Challenges of BMW and Mercedes-Benz
BMW and Mercedes-Benz are still competing and challenging each other in the 21st century, as they both face the future and the challenges of the automotive industry. BMW and Mercedes-Benz are both investing and developing in the areas of electrification, digitalization, and autonomous driving, as they aim to meet the changing needs and expectations of the customers and the society. BMW launched the i Series in 2013, a series of electric and hybrid vehicles that showcase the brand’s vision and innovation. Mercedes-Benz launched the EQ Series in 2016, a series of electric and hybrid vehicles that represent the brand’s intelligence and emotion.
BMW and Mercedes-Benz are also collaborating and cooperating in some aspects of the automotive business, as they recognize the benefits and advantages of working together. BMW and Mercedes-Benz formed a joint venture in 2019, called IONNA, which aims to build a network of electric vehicle charging stations in North America. BMW and Mercedes-Benz also agreed to share some of their technologies and platforms, such as the NACS connector, which allows non-Tesla electric vehicles to use Tesla’s Supercharger network.
BMW and Mercedes-Benz are two of the most iconic and influential brands in the automotive industry. Their rivalry is legendary, and has shaped the development and innovation of luxury and performance vehicles for over a century. From their origins in Germany to their global expansion and domination, these two brands have been competing and challenging each other in every aspect of the automotive business. Their history and evolution are a testament to their passion and excellence, and their future and challenges are a reflection of their vision and ambition.