Mercedes-AMG admits it lost customers with four-cylinder hybrid C63

Mercedes-AMG’s decision to replace its most affordable V8-powered model with a four-cylinder hybrid was met with criticism, and the brand has admitted its C63 S E Performance hasn’t been as well-received as it had hoped.

In 2021, Mercedes-AMG announced the new C63 – traditionally available with a naturally aspirated 6.2-litre, then a twin-turbo 4.0-litre V8 – would move to a turbocharged 2.0-litre four-cylinder plug-in hybrid powertrain.

Though the hybrid C63 S E Performance is capable of producing up to 500kW and 1020Nm – up on its 375kW/750Nm V8-powered predecessor – it weighs almost 400kg more, and the petrol engine itself only makes 350kW/545Nm.

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Four years on, Mercedes-AMG boss Michael Schiebe – who succeeded Tobias Moers in March 2023 – told the UK’s Car magazine that the switch has led to a departure of long-standing customers, even if it doesn’t think the product warrants the criticism it receives.

“We see that some of our very loyal customers struggle a bit with the concept. Of course, no doubt we have also lost some customers who are just into V8s,” Mr Schiebe said to Car.

“You need to really drive this car. It’s a very convincing product.

“The C63 is a very important car in our portfolio. It used to be, it is and it will be. We decided with the current version to really go for the latest technology. We wanted something new and that’s why we put the F1 powertrain into a street-legal car.”

According to Mr Schiebe, the advantages of the PHEV C63 weren’t correctly communicated to not only its customers but also its broader sales team, leading to the controversial model being judged on face value.

“We jumped far ahead with this technology, but we should have explained the technology more to our salespeople and customers. We will continue to do that and further improve,” the executive added.

“There is a German saying, ‘You never have a second chance at a first impression.’ Maybe we missed out on the first impression, but if you have the opportunity, I’m sure you will be convinced of the technology.”

While a 2023 report by US publication Car & Driver that said a new V8-powered C63 would debut in 2026, this was shot down by an unnamed Mercedes-AMG employee shortly after, who told Auto Motor und Sport: “This is pure nonsense”.

The C63 isn’t the only AMG model to lose its V8, with the next-generation E63 set to move to a turbocharged six-cylinder engine, also with PHEV tech.

C63 competitors such as the BMW M3 and Audi RS4 are powered by twin-turbo six-cylinder engines – a 3.0-litre straight-six and 2.9-litre V6, respectively – while the E63’s M5 and RS6 rivals have gone down different paths while keeping their V8s.

The Audi RS6 packs a 4.0-litre bi-turbo V8 under its bonnet, though it’s unclear what its successor will use. The RS6 and RS7 lines will be merged, and the next-generation model is set to be revealed this year.

In contrast, the new-generation BMW M5 has gone PHEV, with a twin-turbo 4.4-litre V8 mated to an electric motor, producing 535kW and 1000Nm combined.

Like the C63, it’s been criticised for its hefty weight, tipping the scales at 2435kg, a massive 540kg gain compared to the previous-generation M5 Competition.

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