The great Mercedes AMG sports division may well be under fire thanks to strict CO2 targets, putting 75% of AMG cars in danger.
According to The Financial Times, reducing the number of AMG models could be the only way the German marque could relieve itself of these extra fines which would come to a sum of €25bn if the same number of AMG cars were sold as last year. Obviously, AMG cars are the most polluting out of the Mercedes portfolio, so this line would have to be cut down. But industry analyst Max Warburton claims that this would be a “catastrophe for profitability” as the more premium cars have a much higher profit margin than that of the lower range.
Responding to the report, a spokesman from Mercedes said that “Mercedes-AMG is a significant strategic pillar for Mercedes-Benz cars with a clear powertrain strategy for the future.” He adds: “Starting with the first plug-in hybrids coming to the market in 2020 and followed by a new model range equipped with electrified powertrains, Mercedes-AMG will also contribute to lowering the average fleet emission of Mercedes-Benz Cars.”
It was only earlier this year when it was reported that the next C63 AMG would swap the current 4.0-litre V8 for a 2.0-litre four-cylinder hybrid system. It’s also possible that Mercedes could partner with a lower-emmision company, similarly to when Tesla partnered with FCA to reduce its overall CO2 production of its fleet. Whatever is going to happen, be ready for a large change coming to the industry, even if it is just the hybridisation of some of the best European muscle cars in the world.