Creating the Mercedes-Benz Logo

Start by creating a new file. Create a circle using custom shape tool.

Using pen tool create path as shown in the images below.

Select direct selection tool and select both the path.

Enable the first icon on the top bar. And then press combine button. This combine both the path together.

Double click the layer to open layer style window and apply dropshadow, bevel&emboss, inner shadow & color overlay. Apply settings as shown.

Type text "Mercedes-Benz" in a new layer.

Apply bevel&emboss effect to the text layer. Apply settings as shown.