Struggling car companies have for decades joined teams compete on the international level, the French manufacturers have done it with Peugeot and Citroen, as for the Germans? They are still bickering.
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Mercedes-Benz and BMW have agreed to not work together beyond their current cooperation developing hybrid technologies. In the mean time, Mercedes are nearly done with the new BMW M3 killer, the Mercedes-Benz C63 AMG.

Powered by an enormous 6.3-litre V8 engine (360kWs), the new C63, is no longer just a C-class with a big engine. Mercedes says the new C63 is focused on handling as well as power. The C63 will take on the new BMW M3 which will come in a four-door variant for the first time.

Sources say the new C63 is likely to come equipped with Merc's new Advanced Agility Package, which gives drivers the option of a 'Sport' mode which modifies the driving characteristics by firming up the dampers and improving steering and throttle response.

Although we love Mercedes, we have always held a strong belief that although they make great, powerful, and beautiful cars, Mercedes cars have always been more orientated towards the over 50s whilst BMW, is arguably a brand for the young (or young hearted at least).

Mercedes will only sell the AMG C-class with an automatic transmission, although there is an option for wheel-mounted paddles (DSG style) with manual modes.

The C63 will go on sale in Europe early-mid 2008. Australian release date is expected to follow soon after.