Mercedes-AMG GmbH, commonly known as AMG, is the high performance division of Mercedes-Benz. AMG independently engineers, manufactures and customizes 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 vehicles; Daimler-Benz 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 fiber than their regular Mercedes counterparts. AMG models are typically the most expensive and highest-performance 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 350).Traditionally, the two numerical digits signified the engine's displacement size, however, recent models have deviated from such correlation.
All AMG engines are hand built, using a "one man, one engine" philosophy at the current AMG plant in Affalterbach, Germany. To signify this, each AMG engine builder stamps the engines they produce with an engraved plaque depicting their signature. According to Mercedes-Benz, there are only about 50 AMG engine builders. As part of the official Mercedes product line, the AMG models are sold side-by-side with regular production models, unlike those offered by other Mercedes tuning firms such as Brabus.