AMG: V6 won't dilute brand values

Opinion
Mercedes-AMG has become one of the most recognised high-performance brands on the planet. The high-octane company has built its reputation over the last 50 years by transforming regular Mercedes vehicles into luxurious but snarling beasts.

The look, the feel and the mechanical elements are all reworked, but most importantly AMG builds bespoke engines – from the ground up – at its Affalterbach plant in southern Germany.

It has a "one man, one engine" ethos that provides customers with a special element that few other mass market car companies provide, German or otherwise. And that's why AMG's are the most expensive Mercedes you can buy.

But that philosophy has recently changed, for better or worse.

The company now offers AMG 43 models, which are powered by a lusty new 3.0-litre twin-turbo V6. The only thing is, they're not built by one bloke. They're not even built at Affalterbach. And they don't sound half as good as those that are.

Why has AMG changed tack? Because it's cars are now stupidly popular. AMG will sell an astonishing 70,000 vehicles in 2016, 5000 of them in Australia, and the profit margins are higher than regular Benz cars.

This writer recently tested the Mercedes-AMG E 43 AMG and there's no denying its performance potential. The car is fast. But it didn't feel special and to be blunt, it simply didn't feel deserving of the AMG badge.

So is AMG diluting its core brand values and putting profits ahead of pedigree?

AMG boss Tobias Moers told motoring.com.au that the switch to mainstream engines wouldn't harm its image.

"Two and half or three years ago -- it was the end of 2013, starting 2014 -- we had an very intense discussion about the strategy, about one man, one engine.

"In the performance segment, 45, 63, 65, one man one engine is absolutely necessary. But in the sports segment, the key is more about having a very good package that represents AMG in that segment,: Moers stated.

"Our perspective is that one man, one engine is not so important [in that segment]," said the AMG kingpin.

AMG is pushing the envelope with the likes of the GT coupe and roadster, its Porsche 911 rival, and has just announced it'll test the limits of road-legality with a new hypercar. Limited to 250 units this F1 car for the road will cost millions of dollars and will melt the minds of all who drive it.

So while the company is pushing hard to elevate its image at the top end, is it at risk of undoing all its good work by badging a new era of cars that simply don't carry the same level of craftsmanship as AMGs once did?

"It's always a question of how you handle things like that, the expansion of the portfolio," said Moers, defending the use of a full-blooded AMG badge on a car that, well, isn't a pure-bred AMG.

"You can easily put the badge, AMG and 43 on the trunk and put an engine with more horsepower in. It works out well for maybe one year or two years, but it's not sustainable for the future.

"So every AMG 43 has dedicated front axle engineering by us, different steering, different elastokinematics, sometimes different suspension arms on the rear axle, a different AMG drivetrain with our 4MATIC application and unique engine and gearbox calibration," Moers said.

"Everything's done in house," he said. Everything except the engine, that is.

Audi and BMW also have similar offerings to the AMG 43, but rather than watering down the Audi RS and BMW M pedigree, those companies have mid-level performance brands, Audi S and BMW M Performance respectively.

Mercedes even had its own AMG Sport brand but decided to do away with it. Nevertheless Moers is adamant the move to slap the AMG badge on mainstream models is the right one.

"So the package will be provided to our customers, that's what they expect from us. They're happy with the package. And it gives a different customer journey. Some come from standard production cars. Coming from 300 to 500hp in a C63 is a little too big [for some customers].

"So now they can buy a 43, get used to it and make the next step. That's what they do, that's what we see," claimed Moers.

No doubt the wide spread of AMG 43 models, from its compact SUVs and roadsters to mid-sized and  large cars like the C-and E-Class, will deliver significantly increased sales for the brand, globally and in Australia.

But there's a reason why Mercedes-Benz skunkworks team, AMG, has become the brand it is today.

It's stuck to its core values, providing something unique and distinctive…

Until now.