High-performance division is raking it in for the German automaker

Mercedes is cooking up some big plans for its high-performance division and if the fruits come to bear, we could be in line for at least 10 new models bearing the AMG nameplate. This exciting development came from no less than Mercedes-AMG chairman Tobias Moers, who spoke to Automotive News and elaborated on plans to beef up the AMG lineup in light of the division’s growing sales volume.

Moers didn’t specify which existing AMG variants will receive new members to their families, but he did say that at least 10 will be added before 2016 ends. What’s clear is that the big wigs over at Daimler are toasting the peaking popularity of AMG. In 2015 alone, sales of AMG models reached 68,875 units, an impressive increase of 40 percent from its sales numbers the year before.

Demand is definitely on the uptick and Mercedes is smart to take advantage of maximizing that potential. Adding more models to its lineup will go a long way in addressing that, but the German automaker is also exploring other ways to leverage AMG’s popularity to reach more audiences.

According to Moers, one way of doing that is increasing the profile of AMG among its massive Mercedes dealership network. Dedicated AMG showroom areas are increasing and Mercedes itself is considering setting up stand-alone AMG showrooms. One is already scheduled to open in Japan and another one could follow in Australia, if it’s determined feasible for that market.

Continue after the jump to read the full story.

Why it matters

This is the kind of problem every automaker wants to have – what to do when a brand turns into a goldmine. Mercedes has to make sure it keeps coming out with those shiny bricks. Mercedes is pushing all the right buttons with AMG and it’s reaping the rewards for it. It’s a great position to be in, especially if it can leverage it to even bigger gains down the road.

My only concern at this point is there’s a market saturation coming from within the AMG brand. Currently, there are 38 AMG-branded models – already a healthy number – but adding at least 10 new models to the mix, with the possibility of more in the pipeline, begs the question as to whether Mercedes is becoming a little too ambitious for its own good. I certainly can’t fault the company for taking this position because the responsibility is there to make sure that the supply can keep up with the demand. Adding new models into the mix answers that, even though a part of me still wonders if the bubble’s going to break anytime soon.

But like I said, I don’t find fault in beefing a brand that’s as healthy as it’s ever been. A lot of people from all over the world are clamoring for Mercedes-AMG models. The sales numbers prove it. I just hope Mercedes knows well enough to tread carefully with this expansion because at any point in time, this goldmine that it has could dry up just as fast.

The popularity of AMG also speaks to one thing that still holds true in the auto industry. As popular as hybrids and electric vehicles have become – and will continue to be – there’s still a healthy market for cars that remain true to their performance roots. The healthy supercar market is proof of that, as is, evidently, AMG’s growing popularity.

Mercedes-AMG C63 Cabriolet

2017 Mercedes-AMG C63 Cabriolet High Resolution Exterior
- image 670489

Read our full review on the Mercedes-AMG C63 Cabriolet here.

Source: Automotive News

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