A camera and LED panels create the illusion of an invisible car.
Taking the principal that to see through something you need to see what's behind it, they covered the driver's side of the car in mats of LEDs, and mounted a digital SLR camera on the opposite side of the vehicle.
The camera shoots video on the passenger side of the car and the video is displayed in real time on the driver side of the automobile.
This ingenious approach, originally pioneered by scientists at the University of Tokyo, works on the same principles of the blue screen used by TV weather forecasters and Hollywood filmmakers.
It's an idea that has stunned onlookers, but may lead to crashes.
The idea also mimics the iPad 2 Halloween costume that seems to displays a gaping hole in the human body.
The next conundrum-what to do with an invisible car ? Take it on a week long tour of Germany, obviously.
In Mercedes' promotional video, stupefied Muggles stare and fall about in shock as the team put the car through its paces along the highways of Hamburg and the bridges of Bavaria.
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