Mercedes-Benz marks 100 years as profit halves and luxury towers launch

Mercedes-Benz celebrated its centenary in 2026, marking 100 years since the 1926 merger that created the Daimler‑Benz AG and the registration of the three‑pointed star logo. The brand, described by marketing chief Christina Schenck as a symbol of pioneering spirit, engineering excellence and timeless design, remains one of the world’s most valuable trademarks.

At the same time the automaker is confronting a sharp earnings decline – 2025 profit fell from €10.4 billion to €5.3 billion, a drop of almost 50 percent, driven by tariffs, adverse exchange‑rate effects and intense competition in China. In response Mercedes‑Benz has tightened its cost structure: a German‑wide savings plan postponed the annual “transformations bonus” for about 90 000 of its 108 000 employees, while the board announced a “radical acceleration” of processes and a shift away from the earlier luxury‑brand strategy. CEO Ola Källenius now emphasizes a technology and product offensive focused on software and electromobility.

Beyond cars, the group is expanding into luxury residential projects, planning branded towers in Dubai and Miami that will feature the iconic star on their façades. These licensing ventures are positioned as new emotional touch‑points for the brand, complementing the launch of numerous new vehicle models intended to revive sales.