The company Mercedes-AMG GmbH is known as AMG produces high performance cars which is sold under the brand name of Mercedes-Benz. AMG has their own technical manpower who produce Mercedes-Benz AMG vehicles in Germany having their head offices at Baden-Württemberg and Affalterbach at Germany.
Earlier AMG was an independent engineering company which was engaged in performance improvements of Mercedes-Benz vehicles. In 1999, Daimler-Benz AG took over the control of AMG and finally in 2005 it become sole owner and the company was named as Mercedes-AMG GmbH.
If you look at various AMG models and compare it with any Mercedes Nashville models, you will notice that it has more aggressive look and level of performance is much higher, better stability, better handling and carbon fiber is extensively used as compared to its other counterparts of Mercedes-Benz.
During 1967, AMG was founded mainly for making racing engine by two former engineers of Mercedes-Benz called Erhard Melcher and Hans Werner Aufrecht. They started their company in Stuttgart and the name AMG was derived from Aufrecht, Melcher and Groβaspach which was birth town of Aufrecht. During 1976, AMG moved most of their facilities to Affalterbach, while their racing engine project remained in their old location. Erhard Melcher was no more partner of the company but was associated as an employee in the old location.
By 1993, AMG started modifying Mercedes-Benz cars and Daimler-Benz AG had developed understanding with Mercedes-Benz and started marketing Mercedes-AMG cars. On 1st January 1999, AMG became Mercedes-AMG GmbH. During 2005, Aufrecht sold all his shares to DaimlerChrysler and after that Mercedes-AMG GmbH has been fully taken over by Daimler AG.
Initially, AMG was engaged in designing and testing various kinds of racing engines. Later they expanded their business by making custom road cars almost of the standard of Mercedes cars. They started modifying various models of Mercedes-Benz cars and started marketing them.
Finally, Mercedes tied up with them and started developing new engines for Mercedes and they started collaborating with each other.
AMG also develops engine for Huayra and Zonda cars. They also have relationship with Aston Martin Lagonda Limited and they are having technical partnership. With this collaboration Aston Martin will launch many new different models of vehicles.
Now they have developed many new models with “one man, one engine” philosophy. They also have a product line where Mercedes vehicles are produced and side by side there is another product line producing various AMG models.