CarSifu was among a panel of Malaysian motoring writers who sat down for a chat with the man responsible for making the AMG brand the success it is today. Mercedes-AMG CEO Tobias Moers explains the brand, the products and the strategy behind them during our stopover at the 2017 Frankfurt Motor Show in September.
Q: Did the SLS Electric Drive influence the development of the 1,000+hp hyper car?
Moers: Yeah, what you see in that SLS is an electric performance car. It was part of the definition of Project ONE to use all our expertise and competencies that we can gain out of our electric drive programme.
Q: Why are the new AMGs with the Panamericana grille so ‘angry-looking’?
Moers: I think it’s not angry. Call it presence. Call it a differentiator. We now have that bespoke purposeful look for AMG cars. Part of AMG performance cars’ identity in future will be that Panamericana grille. To identify an AMG is easily done by the grille.
Q: Besides working with Aston Martin, are there any plans by Mercedes-AMG to tie up with Asian car makers such as those from Japan and China?
Moers: We are a supplier of engines and electronics to Aston Martin. That’s it.
But never say never. We have been approached by others but we are not able to do so. We do have limited capacity and people, and we are focused on our projects. AMG is 100% linked to Mercedes-Benz, so whatever we do will have to be in line with the mother company.
Q: AMG is going electric in a big way. How will it affect the brand especially the big engine sound that electric motors lack?
Moers: Sound is an important asset to the brand and our customers. We will have to get use to electrified cars. We are working on the sound as part of our current R&D. I won’t go into details now.
The Mercedes-AMG GLC 63 S 4MATIC+ SUV and Coupe.
Q Will AMG build its own SUV?
Moers: Nope. We are part of Mercedes-Benz. We do have SUVs such as the GLC and GLE. There’s no room for anything more.
Q: Are there any plans for a more extreme version of the A 45 AMG beyond the 381hp we saw in the facelift? How much more can the engine be pushed?
Moers: Not that engine. It’s the end of the road for that engine. Expect a little bit more (performance) with the next generation.
Q: The Project ONE will be produced in limited numbers. Do you have people badgering you to make more?
Moers: We are producing only 275 units. Ya, it is done! We are 4 times overbooked with the 275 numbers. We promised our customers the Project ONE would be a limited run. This is something that would dilute a brand if we don’t stick to our promises.
We don’t have a clear understanding who will get the first one. By 2019, we hope to roll one out per day from the factory. We have a long production time that guides us into 2020. Each car will have different colours and come bespoke to customer demands.
Q: Will powertrain electrification spell the end of V8 engines?
Moers: No, why should it? A combination of electric motors and engine is going to be the key for future performance. We have to work on electrification.V8 engines will not be retired.
Q: AMG is big now. How much more can the brand grow without diluting it?
Moers: If you do it wrong, you are right that the brand could be diluted. You have to be sustainable with the product you bring to market.
I’m an absolute product aficionado. I believe a product is the key. A product is supportive of the brand, then the brand is going to be stronger and stronger and stronger. The combination of product and brand is going to be the key.
For example, we could have easily tweaked the C43 – modify a bit of the engine and gearbox, put a badge on the trunk and full stop. Easily done! And it works for sure for two to three years. But it won’t be sustainable.
So instead,we put more effort into the C43. We did a new front axle and modified everything in the rear axle. We introduced three levels of ESP functionalities. Everything is done in-house. The guys who worked on the chassis calibration, suspension, ride and handling of the C63 are the same guys also doing the C43 as well.
This is, in my perspective, the AMG brand and product strategy. If you stick to that, there’s no risk of diluting the brand.
Come to think of it, the entry performance 43 works pretty great (chuckle). We have sold more performance (cars) than ever. We see customers coming from other brands buying a 43, maybe, because they think the 63 is too much. After one year, they stepped up to the 63s. So there’s no cannibalisation in our portfolio. We monitor that quite well. If you have a strategy, you have to question that strategy all the time.
The entry performance in the C Class works quite well through the 43s and 63s. There’s a good chance of an entry performance version as well in the compact generation.
The E400 4MATIC AMG Line.
Q: Nearly every model in a Mercedes-Benz showroom today is offered with an AMG Line. Isn’t this diluting the AMG brand?
Moers: Absolutely not. The line equipment has been so successful for years and nothing (bad) has happened. The brand is stronger than ever.
We set up a strategy in 2014, and have positioned the brand quite well.
I have a clear understanding of what the brand stands for. When I started out as a CEO, I was aware the brand was not at the level I would like it to be. We are still not there. You have to be aware about everything. You should not have dreams about what the brand is. You have to be really focused.
Q What’s your daily car in 2017? You mentioned using the AMG GT S and the GLE 63 AMG coupe in 2015.
Moers: This year, it’s a C Class coupe. A 63 coupe. It’s black, all black. Black rims, black, black, black. If I do have more time, it’s the GT R.
Q: At the entry level, you have the 3.0-litre V6 43 and the flagship is a 1.6-litre electrified car. Do AMG customers wonder about this apparent mismatch?
Moers: No! Nothing. We had 100 customers over for Project ONE with us the other day and they were so enthusiastic. The engine displacement is just a number and not an indication of performance.
Q: Any updates on the AMG GT Black Series?
Moers: The Black Series is always part of the second life cycle of a car. It’s not there yet. We still have another three years to go.
Q: AMG celebrated its 50th year in 2017. Where do you see AMG going in the next 50?
Moers: I don’t know. What you can project is the next five years. You don’t have a chance to have a 10-year strategy; you have to have scenarios. We look forward to the brand being still there. Being very successful. Maybe driving electric.
READ MORE:
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Pick up a Mercedes-AMG GT R from RM1.7 million
First drive of Mercedes-AMG GT R — and other GT cars
Mercedes-AMG GT-R sets Nürburgring record
Five trends at the 2017 Frankfurt Motor Show
Keyword: Talk time with AMG's Tobias Moers