Back in the mid-1960s, there were two guys with a small garage in an old mill that were building engines for fast cars, really fast cars. When these two guys acted on their urge they spawned one of today's largest suppliers of exclusive high-performance cars. The two guys were Hans-Werner Aufrecht and Erhard Melcher, the founders of AMG Motorenbau und Entwicklungsgesellschaft mbH (AMG Engine Production and Development, Ltd.). Thankfully, the company name was later shortened to AMG.

Aufrecht and Melcher started in 1965 by preparing a racing engine for Manfred Schiek's 300SE. Two years later, the owners officially founded the company and began their humble beginnings in the "Old Mill" in Burgstall, Germany.

According to historical information provided by Mercedes-AMG, the first private customer of the new company was a Mercedes owner from Kiel. With a humble beginning there is always a good story. Here's the gist of the story going around today, which is said to be Friedrick Aufrecht's story. Friedrick is the brother of AMG co-founder, Hans-Werner.

A customer from Kiel, a town located on the northern border of Germany, is said to be the first private customer of the young Mercedes tuning company. As the story goes, he was in the paddock at a motor race when he got a hot tip. He was told about a garage in southwest Germany called AMG that could squeeze every last ounce of torque out of a Mercedes engine. This customer had a fondness for torque and he decided to visit the garage. After following the sketchy directions provided, he found himself in front of two tiny garage doors at an old mill. Garage doors so small, in fact, that he wasn't sure if his Mercedes would fit inside. Is this the right place he wondered? He ventured inside and observed a hand dug inspection pit in the middle of the garage. Now, he definitely wasn't sure if this was the right place so he asked, "Where can I find AMG?" The mechanics responded: "you are in the AMG garage."

Later on the customer from Kiel picked up his car and headed home. He was almost to Frankfurt when he turned around and drove back. The astonished mechanics couldn't believe it. Just three hours later their first private customer was already bringing his car back. To their disbelief, the customer drove all the way back to the garage to tell them personally how happy he was with the car. The mechanics were inspired and the AMG legacy began.

During the next three years AMG concentrated on building race cars based on the Mercedes-Benz 300SE sedan. They liked the Mercedes-Benz 300 models and some bad luck for a Mercedes owner turned out to be good luck for AMG. They got wind of a damaged 300 that was being sold by a doctor and they bought it. It was purchased for less than $6,000 at a time when new models were selling for $20,000.

The AMG mechanics enlarged the cylinder bores, modified the camshafts, intake manifold and several other components. By the time they were finished tinkering, their investment in labor and parts exceeded $100,000. They entered races and encountered major setbacks, but failure was not an option. They labored on and by 1971 the stage was almost set. All they needed was a driver for the 24-hour race at Spa, Belgium.

A few drivers turned down the offer to drive their Mercedes heavyweight, including then-recent Le Mans winner Gijsbert van Lennep. Finally, European Go-kart champions Hans Heyer and Clemens Schickentanz became available and AMG had their team. The team surprisingly achieved a class victory and finished second in the overall championship with their Mercedes-Benz 300SEL 6.8-liter AMG. The owners' persistence and passion had finally paid off for the small company and their success spread rapidly.

In the 1970s the company started offering high-performance tuning packages to Mercedes customers in Europe and other markets. Some Mercedes customers wanted individually customized vehicles and AMG met their needs as well. Like NASA, AMG was transferring technology. They took the lessons they learned on the racetrack and applied their knowledge to production cars. It was a smart and profitable move for AMG, which lead to a steady increase in orders and a solid reputation as the premiere Mercedes-Benz "tuner" in the world.

By 1978 the company had outgrown the old mill and the owners encountered another urge-relocate. They moved their operation to a larger facility in Affalterbach to better accommodate customers and a staff that had grown to 40 employees. Although the orders for production car modifications were rolling in, AMG never lost sight of their passion for motorsports.

In 1980 an AMG Mercedes 450SLC took first place in the European Touring Car Championship Grand Prix race at the Nürburgring. The subsequent AMG racing successes are far too many to list now. It suffices to say that they did well both on and off the track and the company continued to grow rapidly.

Just seven years after moving to Affalterbach, AMG built a second factory and hired their 100th employee. A significant turning point for AMG came five years later, in 1990, when the company signed a cooperation agreement with Daimler-Benz AG. With the agreement came a third factory, an increase in the workforce to 400 employees and plans for the sale of AMG products through Mercedes-Benz dealers located in overseas markets. Soon thereafter, AMG began preparation for the production and exportation of AMG cars to the U.S. market, which today is AMG's largest market.

The first "official AMG" car to reach the shores of America was the 1995 C36 AMG, although enthusiasts had privately imported gray market AMGs such as "The Hammer" much earlier. In 1999 DaimlerChrysler became the majority stakeholder in Mercedes-AMG GmbH. The market demand for AMG cars was high and production climbed from 500 to 20,000 cars per year by 2005 when DaimlerChrysler became the sole shareholder in Mercedes-AMG. Although many things changed during this time, the new owner's continued the tradition of building AMG engines using the "one man, one engine" philosophy that continues to this day.

By Greg Magnus, publisher of AMG Market | Mercedes-Benz Enthusiasts
This article has been featured on Ezine Articles.

There are many opinions we've all heard for avoiding loss of value in collectible cars. Is it better to rebuild an original engine's block than replace it? At what point do you take original paint off a collectible car? Many people spend extra thousands of dollars returning a car to it's original color after learning how it left the factory when new.

The SLML has praised the charm and often superior durability of original paint. Giving up a 90% well preserved original finish, even if faded, to eliminate a few scratches or dents doesn't make sense. Obvious losses come from hasty repair work that shows — from overspray on rubber that should have been removed to misaligned body work that belies an accident free past. Finally, there are obstructive insurance practices that can prevent proper repairs << MORE >>

The following excerpt also includes information that I collected while researching that was not published. You can read the article in the July/August issue of the Star magazine (page 55).

More horsepower. Is it possible and do we even want more?
Its clear the engineers and designers of pre-merger AMG vehicles focused heavily on performance and increasing horsepower. This trend continues post-merger but the focus is slowly but surely changing.

I’ve encountered AMG enthusiasts claiming a "watering down" of the performance bias, while others view this shifting tide as a return to a more balanced automobile. However you view this mild debate it is apparent that we are approaching the horsepower limits for passenger cars. Due to the limitations associated with cooling an engine, the practical horsepower limit is widely believed to be in the range of 650 to 700 hp. Given we’re basically there, what’s next?

New decades create new customer demands and automobile manufacturers are paying attention.

“Sooner or later the market for high-performance vehicles will be saturated, as there’s only limited demand for 600 bhp cars,” explains Oliver Kurz, Head of Planning, Reporting and Order Management at Mercedes AMG. “These are the kind of trends we needed to consider in our planning processes.” (Quote from Cognos website).

Significantly more attention is being paid to creature comforts and cockpit controls. Instead of more horses under the hood expect to see more chips in the chassis. By the end of the decade, a third of a car's value will lie in its electronics and advanced technologies.

AMG competitor BMW is also heavily focused on technology and their advances have caught the eye of tech savvy PC Magazine, which awarded the BMW X5 the "Digital Drive Car of The Year." The criteria for PC Magazine's second annual Digital Drive Awards? They looked for cars with an expected baseline of technology – such as Bluetooth, navigation, parking sonar, stability control, and a full complement of safety features. Then they sought out the first implementations of technology that will be mainstream in two to five years.

Based on PC Magazine’s comments on the, ah, BMW, here’s a few things you can expect,

“Consider the tech package, for instance. The nav system employs a split-screen, transflective display that grows brighter in sunlight. The real-time traffic reports draw information from more than 600,000 other vehicles that automatically report their position and speed (rather than relying on copters, police sightings, and embedded sensors prone to failure). A back-up camera and front/rear sonar combine to provide a backing view – enhanced by Doppler-effect sound – that overlays warning bars (in green, yellow, and red) to indicate your proximity to hazards.”

They can rocket to the future, they can rocket to the moon…if they need anything they push a button and it's done. Sound familiar? Yes, the Jetsons will soon be comfortable in the cockpit of your car.

Last year I had the pleasure of attending an AMG talk given by former AMG Product Manager, Rob Allan. MBCA’s Greater Washington Section organized the event. It was a classic with Rob giving his presentation in the garage bay area at Euro Motorcars of Germantown – where else would a true car guy rather be?

During the presentation Rob touched on the improvements in transmission technology. If you haven’t done so already, kiss your stick shift goodbye. Like it or not machines now shift faster, smoother, and more intelligently than humans. Double down shifting? Not a problem. According to Rob Allan and other automotive aficionados, automatic transmissions are now “the world’s most intelligent transmissions.” The only thing the driver should reach for with his or her right hand is a coffee mug; assuming coffee isn’t dispensed out of the steering wheel in the future – maybe I should patent that idea? You can also expect to hear, “Mom, what’s a stick shift?”

Another resource pertaining to AMG’s future you should consider is the discussion groups published on the AMG Private Lounge. AMG owners have access to exclusive information such as the “Chat Sessions” held on the discussion boards. About once a month the AMG Product Manager from MBUSA, currently Mark Ramsey, hosts a discussion session where he answers questions from AMG Private Lounge members. The publishers prefer not to re-publish the question and answer sessions so you’ll need to visit the Lounge for details.

Performance still holds the prominent role in the AMG marketing campaigns. Consider, for example, the marketing copy for the SL 55 AMG, which reads, “An athlete among roadsters, the muscular, dynamic, tireless SL 55 AMG possesses strength and style.” The performance stats still come first, “With the 517 hp (380 kW) of the AMG 5.5-liter V8 Kompressor engine…” And the styling features still follow performance, “The AMG styling, retractable hardtop and attractive interior complete the look that complements its high performance.”

Will AMG reach the day when the high performance complements the styling? I doubt it but the trend appears to be heading in this direction.

No matter what direction our beloved AMG cars take in the future, one thing will always remain the same: AMG “high-styling” cars will be fun to drive and enthusiasts will drive them.

Below we focus our discussion on the SLK AMG and provide excerpts of the SL Market Letter article (published in quotes below with John Olson’s permission).

2002 SLK32 AMG

Introduced during 2001, the 2002 SLK32 AMG was the first SLK to wear the “AMG” badge. Originally priced at $55k, it features a supercharged and inter-cooled V6 engine that produces 332 lb-ft of torque.

2002: Enter the SLK32 AMG with a whopping 349 HP (0-60 in 4.8 seconds). Three engine choices: 1) 192 HP four valve, supercharged 4 cylinder, 2) 215 HP V6 and 3) the AMG V6. The SLK32 AMG’s engine has twin spark plugs per cylinder for maximum combustion. A newly engineered five-gear “SpeedShift” boasts 35% quicker automatic shifts. The SLK32 AMG uses lower (numeric) transmission gears and a 3.07:1 rear axle for an electronically limited top-speed of 155 mph….

The AMG supecharger is the Lysholm-type (screw type), which provides boost virtually from idle speed. The AMG variant has reinforced suspension and newly designed wheels for better brake cooling. Brakes became 13.15″ diameter vs. 11.8″ standard. Revised air dams/spoilers minimize and balance aerodynamic lift front-to-rear and top speed. A small lip spoiler at the trailing edge of the trunk lid reduces rear airlift by more than 50%. AMG interiors introduce more bolstered seats, unique two-tone leather and dark birds-eye maple wood. AMG instruments are finished in silver. The warranty included free adjustments and regularly scheduled maintenance for the full four years or 50,000 miles. [warranty ended in 2006].

The anti-lock brakes include Mercedes’ Electronic Brake Assist, traction control, and Electronic Stability Program (ESP). Drivers can switch the ESP off to more thoroughly enjoy track events and autocross competitions.

Note: The SL Market Letter has re-published the SLK article on their website as an example article from the SL Market Letter (newsletter). You can subscribe to the SL Market Letter here.
*Excerpts of the article are published here with the publisher’s permission.