The Chairman of the Board of Management of Mercedes-AMG is leaving his post at the end of the month, but not before making good on his promise to create a Lamborghini and Ferrari rival.In 2024, at the launch of the Mercedes-AMG G-Class SUV, brand head Michael Schiebe told Newsweek that he wanted to create a vehicle that would rival those from Italian supercar brands and become the "most successful performance brand."That bold declaration and ambitious, high-risk strategy was part of the reason he won Newsweek's World's Greatest Auto Disruptors Visionary Disruptor of the Year award last year.AdvertisementAdvertisementNow, the first elements of that strategy are coming to life, just as Schiebe is set to fully dive into his new role as a Member of the Board of Management of Mercedes-Benz Group AG responsible for production, quality and supply chain management. On July 1, he will be succeed by Stefan Weckbach, the former head of group strategy at Volkswagen AG.Mercedes-AMG CEO Michael Schiebe at the world premiere of the Mercedes-AMG GT 63 S E PERFORMANCE.The debut of the Mercedes-AMG 4-Door GT Coupe delivers on Schiebe's promise to compete on power. It's a battery-electric car that uses three axial flux motors to deliver a maximum 1,169 horsepower, more than the all-electric Ferrari Luce and plug-in hybrid Lamborghini Revuelto.While AMG has gone the electric-car-with-edgy-but-expected-design route to show its prowess, Lamborghini and Ferrari have gone in different directions. Ferrari's Jony Ive-designed Luce high-riding EV defied the prancing horse brand's traditional aesthetics and stands without typical nods to brand heritage. Lamborghini scrapped plans for an EV citing a lack of demand and is instead refining its plug-in hybrid and gas-powered lineup.AdvertisementAdvertisementWith the new AMG, the brand is going after new-age automobile brand rivals, BYD and Xiaomi. Those brands are lapping the famed Nordschleife racetrack at blistering intervals, though AMG still holds two of the three top lap times for production cars.The BYD Denza Z9 GT has a little less power as the AMG, 1,140 horsepower. The Xiaomi SU7 Ultra has more, 1,526 horsepower. Both companies used the 12.944-mile long track to develop the models.There are Chinese automaker vehicles that are even more powerful products, including the Yangwang U8 SUV, which gives drivers access to 2,978 horsepower. That automaker's U9 Extreme lapped the Nordschleife 30 seconds slower than the record-holding Mercedes-AMG ONE, in 6:59.157, making it the fastest electric production vehicle around the track. The SU7 Ultra's production until lap time is 7:04.957.Taking on the Chinese brands is intentional. AMG sees China as a key part of its future success. As part of a market briefing with the media, Schiebe explained that the potential of the brand in Asia and the Middle East is massive and the company is aiming for a sales increase of over 200 percent compared to its total figures. That market currently makes up one-quarter of all AMG sales.Mercedes-AMG GT 4-Door Coupe."Separate from volume targets, further developing the range means high-margin products which inherently create a halo image. The margin can be far above the standard car and components with comparatively little incremental cost. If done carefully and consistently, for luxury and ultra-luxury brands, there is little reason not to go this direction," Stephanie Brinley, associate director of AutoIntelligence at S&P Global Mobility told Newsweek.AdvertisementAdvertisement"The company has proven it can create in great detail a clear vision of what its consumers want. For those who choose not to step up to AMG, there can remain emotional attachment by association, feeding into the exclusive nature of the AMG development," she said.Related ArticlesRivian Eyes Toyota, Subaru Customers With New R2 SUVBoston Dynamics' Robot Dogs Will Be Patrolling the FIFA World Cup 2026 Thanks to HyundaiThe Audi Nuvolari Is a 987-HP Hybrid Supercar Limited to 499 UnitsStart your unlimited Newsweek trial
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