Mercedes came up as a joint marketing by two companies. A company owned by Gottlieb Daimler and Benz owned by Karl Benz were joined together in June 1926. The company was founded by Daimler Gottlieb and Karl Benz.
Mercedes was named after Emil Jellinek's daughter, Mercedes Jellinek. Emil Jellinek, an Austrian who ran a business of selling cars, he was a racing enthusiast, he raced Daimler AG cars under the name Mercedes.
He contracted with Daimler AG to make specific sport car engines that officially carried his daughter name.
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