AMG doubles sales in two years

Mercedes-Benz is confident it will not diminish the exclusivity of AMG despite the performance division being on-track for record sales beyond 40,000 in 2014.

That total is double AMG's 2012 tally and smashes the official 30,000 sales in 2017 target nominated for AMG by its former boss Ola Kallenius just over a year ago.

AMG's dramatic rise has been driven by the successful introduction of its 45 AMG A-class, CLA-class and GLA-class models based on the front- and all-wheel drive MFA architecture.

But apart from an expanding range of modified Benz passenger cars, AMG has now also entered series production of the bespoke GT coupe, which will be a permanent part of the range rather than a limited edition run like the now defunct SLS Supercar.

And Kallenius, who has been promoted to global charge of Benz passenger car sales and marketing (including AMG), says there is more growth and more expansion models coming, as well as replacements such as the new C 63 AMG that launches in Australia in 2015.

That expansion has previously been put at 30 models in 2017, growing from 22 in 2012.

Expected expansion models include an AMG version of the forthcoming CLA wagon and the GLC compact SUV, both of which will launch in 2015. It also seems certain AMG will embrace some form of hybridisation, following on from Benz's commitment to offering 10 hybrids by 2017.

"We are in a growth strategy and AMG as the performance member of the Mercedes family will play a stronger role in the future and we have few more ideas up our sleeve to make that story even bigger," Kallenius told motoring.com.au at the Paris motor show.

"But I don't want to say everything and obviously I don't want to steal [Mercedes-AMG global boss] Tobias Moers' thunder. I will let him step by step tell that story over the next few years."

Kallenius said authenticity was a key to growing AMG sales without damaging the brand.

"One key thing was especially when we entered into the compact AMGs was if we go into that segment we make sure it is an authentic AMG," he explained. "It has to hit the driving performance of AMG spot-on.

"We spoke also to a lot of customers; E 63, S 63 and so on about what they felt about it. I got the same response from almost all of them: 'cool'.

"So if you do it in an authentic way and you go into another segment, which automatically makes yourself broader, it's no problem whatsoever. And still, at 40,000 out of a worldwide market of almost 80 something million, it is still a very exclusive brand."

Kallenius also made the point that much of the growth in AMG sales was coming out of places such as China where the performance market was only just emerging, rather than expanding dramatically in already established markets.

"We are growing in markets where the performance segment previously just wasn't there," he said. "If you go to China 10 years ago we maybe sold a handful of them [AMGs]. Now we sell thousands.

"But obviously that is still a very exclusive segment in the Chinese market that drives the overall world number up."

In a separate interview at the Paris show, Moers told motoring.com.au that AMG was being stretched to deliver the growth expected of it.

"We are basically very busy to make our future happen," he confirmed. "We have a wide portfolio to bring to the market. We present just now the sedan and wagon of the C-class, there will be an amazing coupe available in the very near future. There is really a lot of business to do for us."

Moers confirmed the vast majority of AMG's business would continue to come from developed versions of Benz road vehicles. He said there would be no six-cylinder AMG engine development, or a second bespoke architecture alongside the aluminium-intensive spaceframe used for the GT, which effectively means no SLS successor any time soon.

"There is no plan for a successor to the SLS because SLS stands by its own," said Moers.

"The company has a certain capacity," he added. "So one [architecture] for that time is okay. We have more than 40,000 cars on sale this year and next year must be better because it is always the target.

"We are happy with everything we have achieved; we have a lineup going from A 45 to S 65 and don't forget the G65. We have our own sports car. AMG is the sports car and performance brand of Mercedes-Benz passenger cars. We don't want to over-stress the company."

In Australia, where AMG has been a significant success story, its percentage share of sales compared to the mainstream range has traditionally been the highest in the world. It will sell about 2500 cars here in 2014, which will be a record, and is running neck and neck with Porsche for sales so far this year.