Mercedes-Benz Australia
Mercedes-Benz Australia: A Legacy of Automotive Excellence and Innovation
On July 30, 2008, Mercedes Benz Australia celebrated a significant milestone with the launch of a dedicated website. This site was created to honour the 50th anniversary of the Mercedes brand’s establishment in Australia, highlighting its enduring legacy and impact on the automotive industry. The launch underscored Mercedes Benz’s commitment to engaging its Australian audience and commemorating a half-century of success in the region.
Mercedes Benz Australia launched a fascinating website on the topic on July 30, 2008, marking the 50th anniversary of the prestigious Mercedes brand on Australian shores.
The company has made a lot of progress since its arrival here in Australia, far from its German home. Take a look at the TMR history of the brand “Downunder”.
The 1950’s: Importation And The Establishment Of The Brand
Mercedes Benz Australia Pty Ltd was established on July 30, 1958, through a collaboration between Daimler Benz AG, a renowned German automobile manufacturer, and Standard Motor Products, an established Australian company. This partnership aimed to bring Mercedes-Benz vehicles and their legacy of engineering excellence to the Australian market, marking the beginning of a longstanding presence in the country’s automotive industry. Since its inception, Mercedes Benz Australia has continued to uphold the brand’s reputation for luxury, innovation, and technological advancement, becoming a prominent player in Australia’s automotive landscape.
General Motors of the US, Australia’s strong ally in the Pacific War, competed with General Motors’ oversized Chevrolets, Pontiacs, and Dodges on our shores.
The Canberra government passed laws in 1953 requiring that all cars imported into Australia require a new “import license”. The Mercedes import car market was small at this time. Only 200 Mercedes cars or 50 trucks were sold annually between 1952 and 1956.
Cheetham, the company’s chief advisor, suggested that it would be more sensible to assemble Mercedes Benz cars here and sell them through Standard’s retail and wholesale operations. He and Standard’s sales executive Keith Horner, who would later become the notoriously hard-lined Ford Australia sales manager, went to Germany to secure the rights to distribute and assemble the Mercedes luxury brand.
Australian Mercedes engineers arrived in 1959 to train Australian workers on how to assemble Mercedes Benz vehicles. Cheetham became the Managing Director of Mercedes Benz Australia.
On the 12th of February 1959, the first Australian Mercedes Benz, a 220S sedan, was delivered to the Victorian Premier Henry Bolte. He was photographed with the now-internationally recognised three-pointed stars badge.
Mercedes Benz in the 1960s: Celebrating 50 Years of Automotive Excellence
In 1965, Daimler-Benz, the renowned German automotive manufacturer, undertook a significant move by acquiring Mercedes-Benz Australia. This acquisition marked a pivotal shift in the operational strategy of Mercedes-Benz vehicles within the Australian market. Previously, under a joint venture with Australian Motor Industries (AMI), Mercedes-Benz cars were assembled locally. However, following the takeover, Daimler-Benz made the strategic decision to discontinue all local assembly operations under the management of Cheetham, opting instead to import fully assembled vehicles.
The joint venture between AMI and Daimler-Benz had initially been established to leverage local manufacturing capabilities and cater to the growing demand for Mercedes-Benz vehicles in Australia. However, this partnership was short-lived. Economic challenges, particularly Australia’s severe ‘credit crunch’ during the 1960s, exerted significant pressure on AMI’s operations. This economic downturn ultimately compelled AMI to reevaluate its involvement in the joint venture. In July 1961, AMI made the decisive move to sell its stake in Mercedes-Benz Australia to Daimler-Benz, effectively terminating the partnership.
Cheetham chose 10 Mercedes Benz Distributors and opened the flagship stores in Sydney and Melbourne, which are York Motors and Lanes Motors.
Port Melbourne was the home of Mercedes Benz Australia between 1959 and 1965. Most of the cars were 190 or 220 models, with local seats, trim, batteries and tyres. They came in only four exterior colours: blue, green, and black.
In late 1969, Cheetham purchased the first land parcel for Mercedes Benz Australia in Melbourne’s Mulgrave Industrial Estate off Springvale Road at Glen Waverley. The building of a parts warehouse, service shop, engineering school, and office buildings began immediately.
The 1970’s: Mercedes Benz and the Evolution of Automotive Innovation
Mercedes Benz Australia began expanding its dealer network and national service network in 1970 to meet the needs of truck fleets. This was an incredible feat at the time.
Hans von Brockhusen succeeded Cheetham after more than 10 years in North America. His goals, as ‘Brocky’ was known, were to improve media relations and increase factory control of Mercedes Benz distribution. The first time motoring journalists heard this was at the W123 280E range’s national launch in Thredbo, a snowy mountain village in June 1973.
Safety belts were standard on the front seats in 1973, a feature that was revolutionary for its time.
Brocky used the successful racing history of the brand to attract public attention by bringing Juan Manuel Fangio to Australia in 1973 to celebrate the 50th Anniversary of the First Australian Grand Prix.
Mercedes Benz in the 1980s:
The S-Class W 126 S-Class models 280 SE/SEL/380 SEL won Australia’s biggest motoring award, the Wheels Car Of The Year Award in 1980.
The federal government announced on the 15th of October 1981 that it would purchase 1295 Mercedes Benz Unimogs (four-wheel drive trucks) locally assembled for the Defence Department. This was the largest military acquisition of the decade.
Mercedes Benz also introduced the anti-lock braking technology (ABS), which was standard on the 380 SL models and optional on S Class models. It also introduced the driver airbag, which was an option for all Mercedes Benz vehicles from 1981.
Von Brockhusen retired from the business in Melbourne after retiring at the National Dealer’s Conference.
In 1986, the federal government imposed a luxury vehicle tax on all cars above a certain value. This tax, combined with the Fringe Benefits on Company Cars at the same time made it difficult for Mercedes Benz to introduce new models.
Mercedes Benz in the 1990s Innovation
Mercedes Benz changed the model names in the decade leading up to the millennium so that the letters came before the numbers. This made sense, given the huge number of models on the horizon. The 320E was renamed the E 320, and thus the ‘E-Class” was born.
The second-generation E-Class with its new, distinctive lights, the A-Class with its revolutionary design (although initially plagued by vehicle stability issues), and the M-Class – the first SUV in the world to be relatively agile – were all examples.
The Mulgrave Headquarters, worth $8 million, was officially opened on December 4th 1997.
Schlickum, the head of Mercedes Benz Australia, continued to look after the motoring media. He even provided a trip to Germany for the launch of the W220 S-Class in May 1998. It was lucky or not that it won the Wheels COTY Award in 1999.
Daimler-Benz Australia/Pacific announced its merger with Chrysler Corporation, a US auto giant, for $A43 billion. The announcement was made by Jurgen Schrempp, then the DBAuP Chairman. It was rumoured, but the media were sceptical because of the completely different corporate cultures between the two companies.
From 2000 onwards
Mercedes introduced a slew of new models in the new millennium, including facelifts to existing models and new additions—the launch of the smart brand’, which included the CLS, R and B-Class.
Schlickum, who was 61 years old, retired on New Year’s Eve 2000 to return to Berlin. Roman Fischer succeeded him as DCAuP’s CEO in 2001. Fisher was appointed CEO just as DCAuP opened its state-of-the-art national parts warehouse in Laverton.
DCAuP sold Chrysler to Cerberus on the 15th of May 2007. Later in the year, DCAuP’s name was changed to Mercedes Benz Australia/Pacific.
The C-Class was awarded the 2007 Wheels COTY Award only last year. The company was then appointed the preferred supplier to the Australian Defence Force and negotiated to supply and maintain 1,100 G-Class cars. In 2007, the company also won a contract with Australia Post to replace its iconic red mail trucks with Mercedes-Benz Sprinters.
The rich history of Mercedes Benz Australia, dating back to 1958, is a powerful reminder of just how much new technology pioneered by the brand has changed the world in the decades since Karl Benz & Gottlieb Daimler first got together. The three-pointed stars have become a symbol of Australia since Mercedes Benz Australia was founded in 1958.
Mercedes-Benz Timeline
1954 | Mercedes-Benz 300 SL “Gullwing”
In 1952, Mercedes-Benz was born in motorsport. The 300 SL racecar (W 194) achieved international success. The letters “SL” stand for “super-light”. The legendary SL is now a series of vehicles produced, beginning with the 300 SL Gullwing. Each generation continues this unique tradition.
1963 | Mercedes-Benz 600 “Large Mercedes”
The Frankfurt International Motor Show in Germany, in September 1963, was a real spectacle. The new model was designed as a representative vehicle of the highest standards and as such, was fitted with unique technical features.
1968 | Mercedes-Benz “Stroke Eight”
The W 115 series was created from the four-cylinder 200 D through 220, and the W 114 series for the six-cylinder 230 and 250. After their release in 1968, the “new generation models” are still commonly known as “Stroke 8 Models”.
1972 | Mercedes-Benz S-Class 116 Model Series
In September 1972, a completely new generation of luxury vehicles was introduced to the public. The first Mercedes-Benz S-Class, or W 116 as it was internally known, replaced the 108/109 Series and consisted of the 280 S and 350 SE models.
1977 | Mercedes-Benz 123 Model Series Estate
In January 1976, the new midrange generation (W 123), with its great variety, impressed customers. They had to wait up to an entire year for their cars at first due to high demand. In 1977, the saloon was replaced by the coupe – a saloon that had a long wheelbase with the factory’s first estate.
1979 | Mercedes-Benz G-Class
Mercedes-Benz G models were introduced in February 1979. This opened up a new world. The new generation of off-road vehicles was designed for both leisure and industrial use.
1982 | Mercedes-Benz 190 E
The public and trade press eagerly anticipated the 8 December 1982 presentation of the compact saloon 190 and 190 E models. The two models were not a replacement for any of the previous models but rather added a new main line in the Mercedes-Benz range. The new range of models was characterized by compact dimensions, weight reduction and improved economy without compromising driving characteristics, reliability, or safety.
