We recently heard that Mercedes-Benz’s AMG division will launch a hybrid model by 2010. Today, AMG Boss Volker Mornhinweg said that the Mercedes tuning division plans on launching a diesel model within three years – by 2012.

According to AutoCar, Mornhinweg said the car will be high-performance diesel that will be an updated version of its legendary AMG Hammer. The AMG Hammer sedan made its debut in 1986 and was based on a Mercedes-Benz W124. It was powered by a 5.6L V8 that made 360-hp and was said to be faster than a Lamborghini Countach from 60 to 120 mph.

Mornhigweg called the car the “Super Hammer” so we’re definitely excited to see what AMG has in the works. AutoCar says that AMG will most likely pick the C-Class or E-Class diesel for AMG treatment.

Source: AutoCar

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