In the mid-1960s, as the automobile industry was experiencing something of a renaissance, two Mercedes engineers, Hans Werner Aufrecht and Erhard Melcher, began working on a new racing engine meant to be placed in the Mercedes 300 SE sedan. Daimler-Benz ended their motorsport programs around that time, so the project was abandoned altogether. However, despite these initial setbacks, Aufrecht and Melcher continued working on the engine independently.

In 1965, their 300 SE engine entered the German Touring Car Championship and won 10 races. Inspired by the success, Aufrecht and Melcher left Daimler-Benz and formed their own company. The company, officially incorporated in 1967, was named AMG.

These magical three letters have become synonymous with speed, high performance, and luxury. But what do they stand for, exactly? Why did Aufrecht and Melcher name their company AMG? What is the difference between an AMG Model and the AMG Line? Here's what you need to know. What does AMG stand for, then? In AMG, the "A" stands for Aufrecht, "M" stands for Melcher, and "G" stands for Großaspach.

Großaspach is Aufrecht's hometown. In fact, in the early days, Aufrecht and Melcher spent a lot of time together at Aufrecht's place in Großaspach, working on that first 300 SE engine. AMG is now a world-famous brand associated with Mercedes-Benz vehicles , but one misconception about AMG cars persists — that an AMG badge means the vehicle was created by AMG.

This is not entirely true because n.