New two-seater sportscar may be available in coupé and roadster forms.

Mercedes’s performance car division, AMG, is planning an enthusiast sportscar to compete with the Porsche 718 Cayman.

The car will come with a possible mid-rear engine layout and styling will be inspired by the 1,000hp-plus Mercedes-AMG Project One hypercar. Currently, this car is at its conceptual stage and the new AMG two-seater is planned to support two bodystyles –a fixed-roof coupé that would go up against the Cayman and an open-top roadster to compete with the Boxster.

If they do make this car, it will be the fifth dedicated AMG model, following on from the SLS, GT, GT 4-Door Coupé and yet to be officially named Project One. The car will also share elements with the upcoming eighth-generation SL. Among the engines AMG is said to be looking at, the updated turbocharged 2.0-litre four-cylinder petrol motor, which is set to power the upcoming A35 and A45 models, is an option. The engine makes up to 406hp, together with the potential for electric boosting through a belt-driven hybrid function.

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