Mercedes-AMG GmbH, commonly known as AMG, is the high performance division of Mercedes-Benz. AMG independently hires engineers, manufactures and customizes Mercedes-Benz AMG vehicles. AMG was originally an independent engineering firm specializing in performance improvements for Mercedes-Benz vehicles; Daimler-Benz AG took a controlling interest in 1999, then became sole owner of AMG in 2005. Mercedes-AMG GmbH is now a wholly owned subsidiary of Daimler AG. AMG models typically have more aggressive looks, a higher level of performance, better handling, better stability and more extensive use of carbon fibre than their regular Mercedes-Benz counterparts. AMG models are typically the most expensive and highest-performing variant of each Mercedes-Benz class.
AMG was founded as a racing engine forge in 1967 under the name AMG Motorenbau und Entwicklungsgesellschaft mbH, by former Mercedes-Benz engineers Hans Werner Aufrecht and Erhard Melcher in Burgstall an der Murr, near Stuttgart. The letters "AMG" stand for Aufrecht, Melcher and Großaspach. In 1993, with AMG having become a high-profile purveyor of modified Mercedes-Benz cars, Daimler-Benz AG and AMG signed a contract of cooperation, allowing AMG to leverage Daimler-Benz's extensive dealer network and leading to commonly developed vehicles. On 1 January 1999 DaimlerChrysler, as it was called between 1998 and 2007, acquired 51 percent of AMG shares, and AMG was renamed to Mercedes-AMG GmbH.
During the early 1980s and up until 1990, AMG offered a variety of engine performance packages, alloy wheels and styling products as an entirely independent company from Daimler-Benz. In 1990, AMG signed a co-operation agreement with Daimler-Benz, and AMG options and cars were then offered in Mercedes-Benz showrooms; in 1999 Daimler AG, then known as DaimlerChrysler AG, bought the controlling share of AMG and made them part of the official Mercedes-Benz line-up. Typical AMG performance enhancements, which the buyer could custom order, included increased engine displacements (5.2 litre, 5.4 litre), performance top ends with port and polished heads and intake, lightened valve train, and more aggressive cams.
AMG initially produced a range of unofficial upgrade and accessories packages mainly for the Mercedes-Benz R107 and C107 (1971-1989 SL roadster), Mercedes-Benz W116 (1972-1980 S-class), Mercedes-Benz W123 (1976-1985 E-class), Mercedes-Benz W124 (1984-1997 E-class), Mercedes-Benz W126 (1979-1992 S-class), Mercedes-Benz R129 (1989-2001 SL roadster), and Mercedes-Benz W201 (1982-1993 C-class) models. The DOHC 32V engine had also just been developed and was the pinnacle of AMG performance. A Getrag five-speed manual transmission could be ordered from AMG, and Mercedes had not offered a manual transmission V8 since the early 1970s.
In the late 1960s and early 1970s, AMG entered the big Mercedes-Benz 300SEL 6.3 V8 saloon, affectionately named the "Red Sow", in the 1971 Spa 24 Hours, and the European Touring Car Championship. AMG and Mercedes worked together on Mercedes-Benz W201 cars for the 1988 Deutsche Tourenwagen Meisterschaft. AMG was made the official partner. Six successive lightly modified Mercedes-Benz AMG models have acted as the safety cars for the FIA Formula One World Championship. Since 2010, the Mercedes-Benz SLS AMG GT3s has been competing in GT competitions around the world, such as the FIA GT3 European Championship, Blancpain Endurance Series, Blancpain Sprint Series, VLN, 24 Hours of Nurburgring, British GT Championship, Super GT, Australian GT Championship, Bathurst 12 Hour, Dubai 24 Hour, Macau GT Cup and Pirelli World Challenge.
