During that same year, Gottlieb Daimler and engineer Wilhelm Maybach created the first “horseless” carriage by attaching Daimler’s engine to a coach. Benz and Daimler’s organizations would later merge to form Daimler-Benz (now DaimlerChrysler AG).
Shortly after Daimler’s death in 1900, his company’s largest distributor approached Maybach to develop the most advanced car of its time. That vehicle, named after the distributor's daughter Mercedes, became the template used by almost all modern cars.
History of the modern car (and the car in general) can also be found here, here, and here.