STUTTGART, BADEN-WÜRTTEMBERG, GERMANY – Mercedes-Benz’s AMG division said it will look to diesel fuel to power a number of its high-performance rides in three years, according AMG head Volker Mornhinweg. The first model reportedly in line to get an oil-burning AMG powertrain is likely to be a smaller, more efficient C-Class sedan, according to

According to Autocar, AMG wants to revitalize its legendary “Hammer” moniker with its new diesel. The “Hammer” was the brand’s ultimate sleeper of the early 1990s, based on a W124 chassis. But rather than build a large diesel sedan or coupe, AMG likely will choose the current C230 as its new “Super Hammer” due out in 2011. The move to include more diesel-powered models is part of its upcoming greener outlook to implement cleaner, more fuel-efficient technologies into its vehicles.