Mercedes: Stuck in Tradition

Erol Barrett
Babson Germany
Published in
3 min readMar 28, 2024

We visited the Mercedez Benz Museum on the second day of our excursion to Germany. We were set free to explore the museum at our own leisure. The exhibition began with Karl Benz's first patent on the first motorized vehicle, a motorized bicycle with the power to reach speeds up to 11 mph. The museum guided us through the early history of the company, tying in the innovations of Benz to German history. We were guided through the streets of 19th-century Germany and shown the importance of Benz's transportation innovation. From 1926 to 1938, the company continued to improve upon the carriage-like motorized vehicle models it had first released. The W142 introduced a new era of German vehicle manufacturing prowess; the W142 could reach speeds of 81 mph. During the reign of the Third Reich, these were the standard automobiles used to transport senior Nazi officials. Mercedes Benz benefitted greatly from their contracts with the Third Reich. They produced armament items such as the LG 3000 truck and aircraft engines such as the DB 600 and DB 601. Both of which aided the nazi regime greatly during their war efforts. The LG 3000 transported soldiers, artillery, ammunition, and rations to the frontlines of the Nazi war effort. Although Mercedes was not alone in this effort, the regime employed many German manufacturing firms to maintain the high cost of warfare against the free world. Post WW2, the history of Mercedes has been one of the leading innovations. The company grew exponentially as automobile demand increased considerably in the United States. Mercedes found themselves producing more than ever before.

Mercedes is one of the largest automobile manufacturers in Germany and is at the forefront of Germany's sustainable development efforts. However, as a company so entrenched in its history, it must grapple with the needs of the future. I was left with questions regarding how the firm would begin to undertake such a large goal as the museum had no exhibition on the firms sustainability efforts. Their fuel-efficient vehicles and new electric vehicle lines are committed to sustainable efforts. However, the company has a long way to go before it can set a national example. Mercedes has set clearly defined goals, such as an 80% cut in CO₂ production by 2030 and using new green energy assets such as solar and onshore/offshore wind power. In the beginning of 2023, they set a goal for 100% growth in EV sales; they achieved 73% growth over the course of 2023. Many of these improvements can be attributed to Mercedes's excellent innovation strategy. This ensures that all business areas continue to improve upon existing processes and that new avenues for growth are identified. Yet, the company continues to produce massive amounts of CO₂ emissions by producing its highly popular combustion engine vehicles. This raises the question of whether or not their shift toward EVs can indeed reverse the damage their company has inflicted upon the planet. As with their involvement with the Nazi regime, the company must work to remedy their mistakes of the past through continued innovation and a commitment to a noble cause.

Sources:

https://www.businesswire.com/news/home/20230330005471/en/Mercedes-Benz-underlines-ESG-commitment-with-substantial-achievements-and-measurable-targets

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