In April 1900, Jellinek concluded an agreement with DMG concerning sales of cars and engines and the decision was taken to use the pseudonym "Mercedes" as a product name. It was also agreed that a new engine "bearing the name Daimler-Mercedes" was to be developed.
A good fortnight later Jellinek ordered 36 vehicles for a total price of 550,000 Marks - equivalent to 3 million Euros of today. That was a very large order, not only by those days’ standards. After a few weeks he again ordered 36 cars with 8 hp engines. The first car equipped with the new engine, a 35 hp racing car, was delivered to Jelinek on 22 December 1900. This first "Mercedes", developed by Wilhelm Maybach, Chief Design Engineer at DMG, caused a sensation at the beginning of the last century. With its low centre of gravity, its compressed-steel frame, light and powerful engine and honeycomb radiator, it introduced many innovations and today is seen as the first modern automobile.
The Week of Nice racing event in March 1901, during which the Mercedes cars were unbeatable in virtually all disciplines, earned Jellinek and his vehicles an exceptionally high profile. The 12/16 hp and 8/11 hp sister models appeared in March and August 1901. And thanks to Jellinek's orders, the Daimler plant in Cannstatt was operating at full capacity.