I had a full blown argument with a colleague who still to this day thinks he owns an AMG Mercedes. He owns a w204 diesel and he has a receipt and invoice that says Amg sport. I own a C32 and you can imagine my upset haha.
It's a shame Mercedes have starting using the AMG name as a trim level but that's just the way it is now.
To a degree I agree with your colleague, it's called a AMG by Mercedes so why shouldn't he call it that? It's not as if he trying to say it's a C63.
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