AMG Boss Defines What the Brand Means in the Electric Vehicle Era

The AMG of today and tomorrow stand for the exact same thing, performance and luxury. But, the formula for tomorrow's AMG isn't as simple to discern as it has been in the past. That said, in an era where connected digital technology is infiltrating everything from car parts to car sales, the notoriously petrol-fueled AMG brand isn't in the midst of an identity crisis.

"We are a product company. And, we define ourselves by our product," Michael Schiebe, CEO of Mercedes-AMG, told Newsweek in an exclusive interview late last year in Spain. "We have a very strong motorsport heritage. And, I know we also have a very strong V8 heritage. And this is a challenge, to be honest."

The steep apex ahead isn't just portfolio electrification of the AMG brand, it's convincing AMG customers of today and tomorrow that electrification, including full battery-electric powertrains, are worth spending their money on.

"We have V8 lovers out there. To convince them that an all-electric car can be as emotional as the V8, it's a task, but we accept the challenge. And we are pretty sure, because we know what we have in the pipeline when it comes to all-electric driving, that we can convince them," Schiebe said.

That convincing is not needed now, necessarily. Schiebe said that AMG, and it's larger Mercedes-Benz overlords are balancing objectives (being an all-electric brand by 2030) with customer demand.

"We will remain committed to offer all the different powertrain options. So, we will continue on our [internal combustion engine] portfolio. Especially in the U.S. we see there's a constant demand for the V8, for the six-cylinder, so we will continue to deliver them and upgrade them," he said.

"We said we can be an all-electric company in the year 2030. We can if the market conditions allow and if our customer wanted. But, if there is still the demand for combustion engine, we will cater their needs ... We will have this combustion footprint still, but at the same time, we will go all-electric, because we just believe that in the future, there will be the performance segment, which will be all-electric."

AMG stands for more than just powertrain proficiency. It's about vehicle driving dynamics as well. Those sport-tuned characteristics will be as important in the future as they are today, Schiebe relayed.

"It's very important for us as a brand, that we bring our DNA from today into this all-electric future ... The team actually sat together for many many months and workshops ... And they thought about, 'What do we need to do if we want to give our customers the experience that they have today in the all-electric future?' So, it's driving dynamics, it's emotions. And, emotion can be design, it can be sound, it can be different things."

Criteria for future AMG electric models is being determined today.

"We define certain criteria. And if we are now discussing the future product substance of a car, which could be an all-electric car, then we go through that list and say, 'Can we tick the boxes that we have defined?'"

Schiebe stressed that there will be certain criteria that every electric AMG car will need to meet, specifically calling out models that will launch by mid-decade and later, saying it will be "new chapter of all-electric performance cars".

The AMG brand leader is determined to ensure that the company's products remain aspirational, undiluted by the AMG-like trim packages that are available on Mercedes-Benz cars. Those models lack the power, tuning and drive dynamics that AMG branded vehicles get.

"If you want to go with your car from A to B, you can do this in a cheaper way than with an AMG," he explained. "But if you want to do it in style, and if you want to have a certain performance," then AMG is ready for you to be its customer.

"The best thing to position a brand is by its product, because products need to convince the customer ... If we deliver superior products, the brand speaks for itself," Schiebe said.