linguistic:voice_change
Toward Daimler-Benz and the first Mercedes-Benz in 1926

The German economic crisis worsened. In 1923 Benz & Cie. produced only 1,382 units in Mannheim, and DMG made only 1,020 in Stuttgart. The average cost of an automobile was 25 million marks because of rapid inflation. Negotiations between the two companies resumed and in 1924 they signed an "Agreement of Mutual Interest" valid until the year 2000. Both enterprises standardized design, production, purchasing, sales, and advertising—marketing their automobile models jointly—although keeping their respective brands.

On 28 June 1926, Benz & Cie. and DMG finally merged as the Daimler-Benz company, baptizing all of its automobiles as Mercedes-Benz, honoring the most important model of the DMG automobiles, the 1902 Mercedes 35 hp, along with the Benz name. The name of Mercedes 35 hp had been chosen for ten-year-old Mercédès Jellinek, the daughter of Emil Jellinek who had set the specifications for the new model. Between 1900 and 1909 he was a member of DMG's board of management, however had resigned long before the merger.

Benz was a member of the new Daimler-Benz board of management for the remainder of his life. A new logo was created in 1926, consisting of a three pointed star (representing Daimler's motto: "engines for land, air, and water") surrounded by traditional laurels from the Benz logo, and the brand of all of its automobiles was labeled Mercedes-Benz. Model names would follow the brand name in the same convention as today.

The next year, 1927, the number of units sold tripled to 7,918 and the diesel line was launched for truck production. In 1928, the Mercedes-Benz SSK was presented.

On 4 April 1929, Benz died at his home in Ladenburg at the age of 84 from a bronchial inflammation. Until her death on 5 May 1944, Bertha Benz continued to reside in their last home. Members of the family resided in the home for thirty more years. The Benz home has now been designated as historic and is used as a scientific meeting facility for a nonprofit foundation, the Gottlieb Daimler and Karl Benz Foundation.