How A Poor Boy Created Mercedes-Benz

Mercedes Benz is one of the oldest and most luxurious car companies in the world, worth around $80 billion. But being among the most desired and expensive cars today, it's easy to forget it's early humble beginnings. It all started with a poor engineer who faced many doubts and failures in his pursuit of building the first horseless carriage. In spite of his challenges, he proved everyone wrong and turned his small venture into the world's first and biggest production car company during the late 19th century. But what started as an inspiring success story took a surprisingly dark turn when the company profited from supplying military vehicles to the Nazis under the work of forced laborers. So sit back and relax because today we'll be covering the insane story of Mercedes Benz and the man who brought automobiles to life, Carl Benz. Carl Benz was born in November 1844 in the German town of Muleburg. Born into a low-class household, his father was a locomotive driver who barely managed to sustain his family enough to get by. However, when Carl turned two years old, his father passed away, leaving him and his mother in dire financial straits. Needless to say, Benz's childhood wasn't easy, but despite living in poverty and going to bed with an empty stomach, his mother did everything she could to make sure her son had a good education. Thanks to her, Carl was able to attend school and showed signs of brilliance at a very young age, most notably in chemistry and mechanics. By the time he was 15, Carl decided to follow in his father's footsteps and pass the entrance exam for mechanical engineering at the University of Carl's Ruchha, where he met a teacher that would eventually play a big role in his life, Ferdinand Redenbach. Redenbach is regarded as the main figure who transformed mechanical engineering from a workshop-based profession into a technical science in Germany and was a huge believer that steam engines, which were mostly used for railways and boats at the time, were quickly becoming a thing of the past. Under his teaching, Benz's interest in horseless carriages really started to take off and being a regular bicycle rider himself, he began tinkering around with his bike, experimenting with possible ways he could create a motorized vehicle. By then, many engineers and inventors had already attempted to create the first automobile, and while a few of them did manage to build self-propelled vehicles, these early inventions weren't fully practical yet. Carl noticed that most of these early vehicles were based on steam engine technology and under the guidance of Professor Redenbach, he soon realized the need for a totally different concept. While many people initially laughed at his vision, he always believed it was possible, he just needed more time to prove it. Thus, after graduating from Carl's Ruchha at the age of 19, Benz spent the next seven years working several engineering and construction jobs, and while he struggled to fit in with any of them, he used everything he learned to kickstart his own venture in 1871. At age 27, Carl partnered with a mechanic named August Ritter, and together they began operating an iron foundry and mechanical workshop in Monheim. At that same time, Benz kept working on his side project, trying to develop a motorized carriage, so having a partner to help him run the business seemed essential. But unfortunately for Carl, his business partner turned out to be unreliable, and after

their tools were impounded by local authorities, their companies struggled immensely during its first year. Luckily, Carl had also met a woman around that time, Bertha Ringer, who would go on to become his wife a few years later. Born into a wealthy family, Bertha was a woman of strong values, and couldn't stand to see her fiance's efforts being wasted by his business partner. So, she decided to use her own dowry to buy out Ritter's entire share of the company, placing her and Carl in full control of the business. Together, they were able to turn the situation around and keep the business afloat during the next 10 years. Despite all the struggles, it was during this period when Carl was able to show his true genius, making major developments and breakthroughs in his side experiments, most notably developing a gasoline two-stroke engine in 1879. To earn more revenue, he also began to patent his inventions, such as his engine speed regulation system, ignition via a battery system, spark plug, carburetor, clutch, gear shift, and a water radiator. With these designs, Carl was not only getting closer to achieving his dream of a horseless carriage, but they also allowed him to add more products that he could sell from his business. However, the business wasn't going as well as he had hoped. To see, the production costs from Carl's venture had risen so much the banks demanded that it be incorporated. This forced him to associate with other investors, and eventually turned his business into a joint stock company in 1882. At the end, Carl was left with only 5% of his company's shares, and thus was downgraded from his position. To make matters worse, his ideas were no longer taken into account when the company designed new products. In fact, he had no say whatsoever in the company anymore. Frustrated and hurt with this arrangement, Carl packed up his things and left the corporation the following year. Leaving his company came as a hard blow for Carl, but the disappointment made him even more determined to be successful. His long-time passion for bicycles would bring him to Max Rose and Friedrich Wilhelm, two men who owned a bicycle repair shop in Monheim. Together they established Benz and C and focused on manufacturing industrial machines and stationary gas engines. Unlike Carl's previous venture, this one started pretty well and became quite profitable within a short period of time. With steady income pouring in and a staff of 25 people, Benz finally directed his main focus toward his lifelong dream, building an automobile using his gas engine. Instead of simply adding a motor to a carriage, Carl built the carriage around the motor, and using similar technology to that of a bicycle, he constructed what many considered to be the first true automobile in 1885 with a Benz patent motorvagan. This two-seater vehicle ran on three wire wheels, forming a tricycle and was powered by a gasoline-forced-droke motor. Its one-cylinder engine produced two-thirds of a horsepower and could go around seven miles per hour. Benz knew this was revolutionary, and after testing and refining his vehicle, he drove his wonder car out to the public in the summer of 1886. However, he received mixed reviews from critics. While some admired his creation, most people were skeptical about the machine, and many didn't want him to drive around on the main streets for fear that the vehicle might explode. Others were even convinced that Benz was the devil driving an infernal carriage. Carl's business partners weren't too happy about it either. His obsession with the automobile kept him away from his work, and they couldn't see

how his invention could be of use. Why would anyone buy such a machine, they argued? It's no quicker than a horse, it can break down easily, and it can run out of fuel. Nevertheless, Carl Benz was convinced that his horseless carriage was the future and began manufacturing cars for sale in 1888, the first person in the world to do so. His biggest supporter was his wife, who would often stay with her husband in the workshop, offering him new suggestions. But even after adding improvements, people still couldn't see Carl's vision. On the other hand, the few people who bought the cars could only use them to cover short distances, and even with that, they needed mechanics to be with them at all times. It also didn't help that they were very expensive, leaving them only accessible to the rich and elite, and even many members of the so-called elite didn't fancy them because they were so loud and messy. If that being said, one thing was clear, Carl needed to convince the world that the automobile was here to stay. One morning, in the summer of 1888, Bertha Benz got up very early, while Carl was still in bed and hopped into her husband's car to embark on one of the most important journeys in automobile history. She brought along her two sons and set out to visit her mother in Forrestheim, which was 66 miles away from Monheim. Bertha didn't inform her husband nor the police about her plans, most likely because if they knew they wouldn't let her go. At the time, no car or motorized carriage had ever previously attempted a journey that long, but she was determined to prove the importance of Benz's invention. However, her trip was no walk in the park. Bertha encountered many problems along the way, like crossing dusty and stony roads that were made for horses, having to stop by a pharmacy to get more gas, and even having to perform a few mechanical repairs. The 66 mile trip took Bertha and her two sons over 12 hours, but eventually they all made it safely to Forrestheim. More than anything, the trip achieved the goal Bertha had set out to achieve, to make people notice that the automobile was the next big thing. With this, the Benz motorvagan became the talk of the town and received great publicity for Carl's business. Soon enough, Benz and C began to expand quickly, so much so that by 1890, it had become the second largest engine manufacturer in Germany, though not by selling their cars, but rather their stationary gasoline engines. But with the addition of two new business partners, Friedrich von Fischer and Julius Gannes, they would soon help to turn this around. As they took care of the business and marketing side of things, Benz could focus more on his engineering goals and was able to patent several new car innovations, such as the planetary gear transmission, the double pivot steering, and the flat engine with a boxer configuration. He also designed and manufactured a new and improved automobile at the recommendation of his business partners, which hit the market in 1893. He called it the Benz Victoria. This was a more luxurious two passenger vehicle that came with a three horsepower engine capable of reaching 11 miles per hour. Thanks to its reliability, the vehicle sold fairly well, but it was its follow-up design the cheaper Benz Velo that really took off. With a total production sum of about 1200 units, the Benz Velo became the world's first large-scale production car in history, making Benz and C the largest automobile company in the world during the 1890s and early 1900s. However, while the Benz company was enjoying its newfound success, it was also feeling

a lot of pressure from another company that was stationed not too far away. Daimler Motrin, Kasell Shaft and everything required to actually do the job. Furthermore, course careers helps you land a job by partnering up with companies that are actively looking for course careers graduates in entry-level positions and internships. Check out their student stories where people like Nila tell her story of going from Starbucks Berista to 60K Technology Sales Rep, or Daila, who finished the course within two weeks and now has 100K salary job from a fully remote position. Go to coursecareer.com forward slash big company and get started with their free introduction course so you can learn exactly how to start a career in the tech industry without a degree or previous experience. Use code bigcompany50 to get $50 off your first course. Now back to the story. Daimler Motrin, Kasell Shaft was headed by Gottlieb Daimler and Wilhelm Maybach. Both were brilliant engineers but Gottlieb Daimler in particular was known for being very competitive and had a lot of connections and knowledge of how to run a business. Knowledge that Carl Benz seemed to lack. The first Daimler car to be sold commercially appeared in 1892. Two years later, they followed up with a two cylinder car and in 1897 they introduced their first front engine model, the Daimler Phoenix. It was clear that the Daimler company was catching up to Benz as their vehicles looked more appealing and comfortable for the public. Mr. Daimler unfortunately passed away in 1900, leaving Maybach in charge of the company but it was under Maybach's control that he designed his crowning achievement, the Mercedes 35 horsepower in 1901. Makes this vehicle so special is that it was the first automobile to resemble our modern idea of a car. It was equipped with a powerful gas engine. The body was wider and larger with a tailored steel chassis and its center mass was near the ground. Initially built for racing, this vehicle was made at the request of a wealthy businessman, Emil Geleneck, who decided to name the car after his daughter Mercedes. This car would go on to win multiple street races and hill climb events, going at a top speed of 56 miles per hour, superior to any other vehicle of its day. This drew a lot of attention to the Daimler company, who decided to rebrand all their vehicles to Mercedes and began producing new models for racing and public use under the same name. On the flip side however, this new trend didn't sit well for Karl Benz's partners, who wanted an immediate response. To counter their competition, they brought in some French designers to help with a new faster model, without the approval of Karl. Benz was angry and upset with their decision. He never liked the idea of auto racing and always preferred to drive slowly and carefully. He was horrified by the noise and danger of someone driving at high speeds on public roads. The car built by his team was not a success either, and this became damaging for the Benz company, which suffered further crises between 1903 and 1904. Angry and disappointed, Karl decided to leave his company, while still remaining on its

board of directors. In the end, he agreed to allow his cars to race, and it ended up being these racing successes that eventually rescued his company. By 1908, Benz had a 120 horsepower racer, a monster that roared from Leningrad to Moscow in eight and a half hours with an average speed of 50 miles per hour, which was an incredible feat considering how primitive the tracks were at the time. But it was the 200 horsepower Blitz and Benz that would ultimately put the brand in the spotlight. Built in 1909, this race car would break the absolute speed record made by any plane, train or automobile of that time, reaching speeds of over 140 miles per hour in 1911. This placed Benz alongside Dimer as one of the most desired cars at the time, and both companies enjoyed good sales in the years to follow. However, this success was short-lived as the first World War broke out, shaking up everybody's lives as well as the global economy. During the defeat of Germany in World War I, the country went through an economic recession, and both companies, Dimer and Benz ended up struggling immensely. To strengthen their possibilities of survival, the two companies put their rivalry aside and signed an agreement in 1924 in which they agreed to combine their production and marketing efforts while still retaining their individual names in order to save costs. This agreement only lasted for two short years, as the German economy got worse, and the two companies were forced to merge completely in 1926, creating a new enterprise called Dimer Benz. Under Dimer Benz, the company rebranded their vehicles as Mercedes-Benz and released several impressive models during the late 1920s, such as the Mercedes-Benz Type 630 and models S, S, S, and Ssk. One of their best and brightest engineers who helped develop these vehicles was Ferdinand Porsche, whose name would later become quite famous in the car industry. As for Karl, he remained on the Dimer Benz board of directors and was able to see the success of his automobiles and marvel at just how far the auto industry had come in his lifetime. Karl Benz passed away just a few short years after the company's merger in April 1929 at the age of 84. After his death, the company continued to grow in size and strength, becoming one of the best performance car makers in the world. But it enjoyed some of its best years under the unlikely leadership of Adolf Hitler. When Hitler rose to power in Germany in 1933, he wanted to showcase German engineering and technology to the world, hoping to elevate his political standpoint above those of his contemporaries. One way he decided to impress the world was by exhibiting German cars in international motor sports. Almost immediately he provided a big subsidy to Dimer Benz to get involved in grand pre-races. No other car company of that era would spend as much time and money building cars as fast as Dimer Benz did, and that fact became evident on the racetrack. From 1934 to 1939 Mercedes dominated grand pre-races, driving as fast as 200 miles per hour with their W-25 and W-125 models. However, they were also challenged by a new rival, Auto Union, another German automaker sponsored by their own country. Auto Union would also go on to have its fair share of success during the same period, winning 25 races from 1935 to 1937. These successes put Germany on top of the world with motor sports events, especially Mercedes

Benz, which even became Hitler's preferred car brand. In fact, one of the automobiles he was frequently seen in was the Mercedes Benz 770, a large luxury vehicle, mainly used by high-ranking Nazi politicians and other Axis officials. However, with the outbreak of the Second World War in 1939, the Dimer Benz company would soon find themselves in serious jeopardy. As the demand for civilian passenger cars became scarce, they began manufacturing military vehicles, submarines, tanks, and aircraft engines for the Nazi military. Their biggest line of business were military trucks capable of transporting three to six and a half tons of supplies. By 1942, they stopped producing public cars altogether, as all their resources were directed toward the war effort, and as the war escalated, new staff were needed to handle the increased armament production. Since the entire workforce were now fighting on the front lines, Dimer Benz started recruiting women in order to keep up with their acquired unit volumes. However, this still wasn't enough to meet the demand, so the company resorted to using forced labor. These prisoners of war, abducted civilians and detainees from concentration camps, were housed close to the plants and forced to work long hours under immense pressure from the Germans. Most of these workers were from Eastern Europe, who were interned in barricamps, with poor, prison-like environments, while concentration camp detainees were monitored by the SS under inhumane living conditions. Many people died in these camps, either from severe malnutrition, mistreatment, or even torture, and by 1944, almost half of all Dimer Benz's 63,000 employees were forced laborers. When the war ended in 1945, the company took a big hit. Because of the pot-stam agreement, all German assets abroad were confiscated and used for payment of reparations. This led to Dimer Benz losing all of its foreign subsidiaries, affiliates, and branches, and they were stripped back to their own plants in their home country. In other words, they had to start all over and build themselves back up again. Dimer Benz was then restructured and had to de-nautify their top management. Because of the drastic changes, the company was able to obtain a production permit from the American occupation authorities in 1946. Although their factories suffered severe bomb damage, Mercedes-Benz still had the advantage of owning its own plant. As many other competitors, such as BMW or Adler, lost their sights when they ended up in Soviet territory. The Mercedes-Benz company then focused their efforts on producing ambulances, police patrol vehicles, and delivery vans based around their 170V models, and used one of their plants as a repair facility for US military transports. By 1947, they were back to producing passenger vehicles, with only 1,045 of their 170V models being produced that entire year. But even under these less than ideal conditions, Dimer Benz still managed to turn a profit just one year later. By the 1950s, Mercedes-Benz was able to regain much of its influence, making a strong comeback in motor sports events, as well as achieving successful sales worldwide. So much so, that by 1954, the company had already profited over a billion dollars. Over the years, Mercedes has completely shifted their image and has become one of the most valuable car brands in the world. However, none of that would have been possible without Karl Benz, who, in spite of his humble background, challenges, and critics, had the courage and determination to turn his dream into a reality. Thank you guys for watching. Hope you enjoyed the video, and please don't forget to like and subscribe. Until then, I'll see you in the next one.