A Future Without Mercedes Benz?

Well, not really. It’s unlikely the Mercedes Benz marque will disappear from the streets anytime soon. But Daimler AG, maker of Mercedes, Smart Car and Freightliner and Western Star trucks isn’t taking chances. The German-based company recently purchased GlobeSherpa, a company that built the ticket-purchasing app for Tri-Met, Portland’s bus and light-rail operator. Daimler folded GlobeSherpa into Moovel, its company that also develops related apps for public transportation providers. Blame it on urban millennials, who aren’t buying cars like they’re supposed to.

Urban residents are deciding that owning a vehicle, that spends most of its time just sitting, often in space that is not free, is not worth the expense. Paying for transportation only when needed makes more sense. Uber and Lyft, car-sharing services such as car2go (owned by Daimler) and Zipcar, or public transportation are all urban options that don’t require capital expense, licensing, maintenance, insurance, et cetera. Developing apps that help one decide the most efficient mode of transportation for a certain trip, Self-driving cars for hire will soon be an option. Tracking that information will help give Daimler a glimpse into future trends. Portland is a good starting point because the city has all these options available, including buses, streetcars, light rail and, of course, bicycles to rent.

Daimler’s history in Portland goes back to the 1930s. Consolidated Freightways needed more powerful trucks to handle steep grades in the mountainous western U.S., so they decided to build their own. The first Freightliner truck hit the highway in 1942. Needing to increase production to reduce unit costs, they entered into a marketing and co-branding arrangement with the White Motor Company. The first outside sale was to the Hyster Company, forklift manufacturer based in Portland. (A Fred Meyer store now occupies the former Hyster location.) White had financial trouble in the 1970s and the distribution agreement was terminated; Freightliner stood on its own until selling to Daimler-Benz in 1981. Daimler purchased Western Star, successor to White, in 2000 to bring things full circle. Consolidated Freightways, after numerous acquisitions, re-branding, divestitures entered Chapter 11 bankruptcy in 2002 and eventually re-merged as Con-Way. Got it?

Freightliner trucks are now built in North Carolina and Mexico. The Western Star brand is manufactured in Portland. Daimler Trucks North America recently moved into its shiny new headquarters building in Portland. Meanwhile, Moovel’s 120 employees work on the future in their Old Town office, near downtown Portland.

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