Mercedes-AMG GmbH, commonly known as AMG, is the high-performance division of Daimler AG. AMG independently hires engineers and contracts with manufacturers to customize Mercedes-Benz AMG vehicles. Mercedes-AMG is headquartered in Affalterbach, Baden-Württemberg, Germany.
AMG was originally an independent engineering firm specializing in performance improvements for Mercedes-Benz vehicles; DaimlerChrysler AG took a controlling interest in 1999, then became sole owner of AMG in 2005. Mercedes-AMG GmbH is now a wholly owned subsidiary of Daimler AG.
AMG models typically have more aggressive looks, a higher level of performance, better handling, better stability and more extensive use of carbon fibre than their regular Mercedes-Benz counterparts. AMG models are typically the most expensive and highest-performing variant of each Mercedes-Benz class.
AMG variants are usually badged with two numerals, as opposed to regular Mercedes-Benz vehicles, which have three (e.g., C 63 as opposed to C 300) The numbers do not always indicate engine size accurately, but are rather a tribute to earlier heritage cars such as the 300SEL 6.3 litre, for example newer-model AMG V8s such as the C 63 actually have 4.0L V8s.