08-05-2014, 04:06 PM #1
Mercedes AMG to counter BMW M Sport with new Mercedes-Benz AMG Sport model range
BMW has been plastering the M badge on everything it can these days. Mercedes is going to basically do the same thing with the AMG badge and an AMG Sport range that will serve a similar function to the BMW M Sport range. Essentially the AMG sport models will receive AMG inspired bodywork as well as interior touches. Exhaust options and engine tune software options will also likely mirror what BMW does with their M Performance Parts range.
Speaking to Autocar an AMG source stated, “We have identified growing demand for our more overtly sporting models, both in petrol and diesel guises. We intend to extend our range with a new line of models developed in partnership with AMG."
The first model you will see that falls under the AMG Sport range will be the upcoming W205 C450 AMG Sport. This model will bridge the gap between the C63 and C400.
Will we see dilution of the AMG badge? Probably not to the same degree as the M badge as AMG historically gave more models in the lineup the AMG treatment than M did earlier on. Is this a bit of a cash grab? Certainly, but Mercedes wants to counter BMW M Sport and this is the best way to do it.
SourceChrome Space Bar Issue: http://www.boostaddict.com/showthrea...338#post738338
08-08-2014, 07:06 PM #2Member
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08-08-2014, 07:57 PM #3
I don't know if it's stupid. Do I like it? No. Is it a sound business decision? Yes.Chrome Space Bar Issue: http://www.boostaddict.com/showthrea...338#post738338
08-14-2014, 07:32 AM #4Member
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Building a premium performance brand is hard work, since the product actually has to perform (not just pose), there is no escaping the journalist test data that the end product is judged and measured by.
It requires the best engineers compensated sufficiently to retain them long term, as well as a competent team of designers, project managers and associated executives that can be held together long enough to gel and perform great things this all adds overhead and becomes a juicy cost cutting target.
The latest generation of MBA's trained well in maximizing short term (quarterly) shareholder value will promise boards huge profits for the company (and windfall bonuses for themselves) by eliminating decades worth of knowledge and experience and using fresh out of college replacements (nothing against them they need the jobs) en mass the consequences of move to only show up 4-years down the road when every one of these Excecutives moves on thanks to their attractive padded resume (or buys their own companies with the undeserved bonuses).
I have seen this over and over again even at the last company I worked at, since the profits that can be made by cashing in on a hard one reputation of being a top tier premium product but using a bottom tier level of overhead are to large for any CEO or Owner to pass up.
The Germans are less prone to this kind of behavior, thus am somewhat confident that this is not the typical cashing in the brand (AMG) behavior.
But I will be on the lookout for reports that the lower priced AMG products cannot make it around a track without issue which would fall short of a true AMG product.
JD power and others will have the results of this move 4-years down the road (regarding if Customer expectations are being met).