AMG has made its mark in the auto industry by building immensely powerful engines to propel large and luxurious Mercedes-Benz models to unimaginable speeds. But with Merc now looking at the lower end of the market, AMG is being forced to do so as well. AMG, however, has its own plans.

A report by Motor Trend suggests that AMG will completely re-engineer the new Mercedes small car platform, transforming it into a rear-drive platform in order to build a proper performance machine. That sounds expensive to us, but with the premium those AMG folks are likely to ask and the huge increase in sales this is likely to bring, it may just be a viable business plan.

Mercedes is currently working on its new front-drive small car platform that will underpin a total of five new vehicles. The first models we are expected to see are all-new versions of the A-Class and B-Class. It is expected that the new B-Class will be sold in the U.S. and according to MT’s inside source, the AMG version is likely to be powered by a turbocharged 4-cylinder.