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New Mercedes-AMG boss outlines his strategy
WEB EXCLUSIVE Q&A
New Mercedes-AMG boss outlines his strategy
Jens Meiners
Automotive News / January 9, 2006 - 6:00 am
STUTTGART -- Volker Mornhinweg, chairman of Mercedes-AMG, gave his first press interview since taking up his new job on September 1 to Automotive News Europe's German reporter Jens Meiners.
To fend off the challenges from BMW's M cars and Audi's RS models, as well as Jaguar, Cadillac and Lexus, Mornhinweg is considering:
Adding dual-clutch transmissions to make AMG cars more sporty
Switching from supercharging to turbocharging for AMG engines to gain additional power
Sharpening AMG's styling
Stuttgart-born Mornhinweg, a 45-year-old engineer, previously was manager of DaimlerChrysler's Berlin-Marienfelde powertrain plant.
Mercedes-Benz took control of German-based tuners AMG in 1999. In that year, the company sold about 5,000 cars. In 2004, AMG sold more than 20,000 units.
What are your biggest challenges ahead?
It is an exciting time at AMG. We are rolling out the new 6.3-liter V-8, we are introducing three new model lines in 2006 and we are putting our new engine into four existing vehicles.
With the arrival of the new, naturally aspirated 6.3-liter engine, is the chapter of supercharged engines closed at AMG?
Yes. Let me say that the supercharged 5.5-liter V-8 really triggered the success of AMG. But with the 6.3-liter V-8, we reach the same kind of output without supercharging. For the future, the trend will be turbocharging.
Will you reduce your engine portfolio to two engines - the 6.3-liter V-8 engine and the turbocharged 6.0-liter V-12?
Yes, in the midterm we will focus on these two engines. But we are looking for ways to bridge a gap between them in future. That could be, for example, a turbocharged version of a V-8, so there would be three levels of power.
What about the SLK and the G class - will they keep the current 5.5-liter V-8 engine?
For the SLK, we could use the new 6.3-liter engine, but we may also raise output of the current engine. There is no decision yet. As to the G class, we are keeping the supercharged 5.5-liter V-8 for the moment, but we are conducting a feasibility study on putting the new 6.3-liter engine into it. Let me also say that we are very happy that the G class continues in production; after all, almost one third of all G class vehicles are AMG versions.
The 6.3-liter engine was developed from scratch, and there are no commonalities with other Mercedes-Benz engines. Would you do such a project again?
The time was right to demonstrate we have the ability to develop this engine, and our customers will enjoy it tremendously. Would we do it again? I want to leave that open.
Could you do a V-6, or would you put a regular Mercedes engine, such as the 388hp, 5.5-liter V-8, into an AMG vehicle?
As to a Mercedes engine, the answer is a categorically "no". Our customers rightly expect a true AMG package, including powertrain, chassis and styling. We have long discussed the possibility of a V-6, but discarded the idea for the moment. But it may be reconsidered in the future if the market changes.
Will you offer an AMG diesel engine again?
There is no diesel project at the moment. We had the C30 CDI AMG in our portfolio before and it was very popular, particularly in Italy and France. We periodically review the possibility of another AMG diesel.
What about hybrids?
We are very closely studying the market. Overall, I have my reservations about the actual efficiency of hybrids, but at the end of the day it comes down to the customer. For example, if one day it becomes fashionable to silently drive up to a hip location in California with electric power, we will have to play a role there, too. That said, our customers tell us the pleasure (from driving an AMG) comes from power, torque and definitely the engine sound.
What is your strategy regarding transmissions?
We are very successful with our current package, which includes automatic transmissions. But dual-clutch transmissions are a feature that can be a lot of fun, because we can shift faster and play with the engine. We are actually evaluating the possible benefits and the feasibility of such an option. But to be clear, it is nothing to expect next year.
Could a dual-clutch system one day fully replace automatic transmissions?
We are not sure, but we are studying it - for AMG. It is a pure AMG topic.
And when the system comes, it will come in more than one model.
Could four-wheel-drive versions be added?
It is a fascinating topic for engineers, but there really is little customer demand. We don't need it for driving dynamics, and currently don't see the necessity beyond the G-, M- class and R- class models. But we could react very quickly if the market changes.
Will have AMG versions of the entry-level A class and B class?
Our core business is the top end of the market. We are driven by customer demand, and in some markets we see that even the C class is a borderline product. It will continue to be our entry-level car, because we can offer a very round package. For AMG versions of the A and B class, we simply don't see demand on the market.
Could you expand your portfolio in other ways?
We have 16 models on the market, and unlike some competitors, we have life cycles that are virtually identical with Mercedes' base models. So we are very happy with the current situation. In the future we want to expand our segmentation. With our entry-level models, such as the C class, we could become even sportier. The limited edition CLK DTM AMG was a tremendous success, and we can do more with similar models. From 2007 on, we will offer performance packages with a sharp focus on sportive characteristics.
What about individualization packages and the Mercedes-Benz "designo" program?
There is a clear need for action here. We will start a program, tentatively called "performance studio," to improve the visibility of our offerings. This includes AMG parts and packages, partly "designo", and possibly further Mercedes-Benz individualization offerings.
How important are motor sports such as the Deutschen Tourenwagen Masters (DTM)?
AMG is born on the racetrack, and our customers are fascinated by it. It is a great marketing topic, and we will always support motor sport, because it is a clear asset. As to the DTM, we live from competition and enthusiasm, and it would be nice to have more than one competitor (Audi). It would be fantastic for instance, if BMW returned to the DTM.
What will be the AMG design signature?
We have our own design studio, and we are currently working on our future design strategy. I would say that on the road you can recognize an AMG even without a label. We have to be careful to keep this signature, which we have developed since 1999 and 2000. But we must also position ourselves for the future. I think it is fair to say that we could become a bit more aggressive.
Do AMG customers want the latest technological innovations?
We have to be careful here. Our chassis and drivetrain solutions are highly advanced. But we work with base vehicles that have a lot of cutting-edge technology and electronics, such as night-vision systems or the COMAND user interface. Our customers do not really ask for more; on the contrary, we are sometimes asked if we can take technology out of our cars.
There is a certain clientele asking for lightweight, purist solutions, such as we offered in the CLK DTM AMG. We will target these customers with the performance packages.
What is your sales outlook for the future?
Since 1999, when Mercedes-Benz fully took over AMG, our sales numbers grew fivefold. We won't match that rate of growth, but our goal is to continue the very profitable growth.
A final question, how do you respond to criticism of making excessively expensive and environmentally unfriendly cars?
Of course, we have a commitment to society. I am not going to tell you we will make a "one-liter car" next, but we definitely have the ambition to make our cars more efficient, and we want to place emphasis on efficient engines and lightweight solutions within the segment in which we operate.[
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I thought it was already crazy to put the 5.5 V8 in it... 
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