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Before Audi unleashed the RS2 Avant and BMW released its first M5 Touring, AMG’s North American division was working on its own high-performance Mercedes wagons. This particular model, nicknamed “The Mallet,” is a one-off development model from 1988 that is now being auctioned off.

The story of this Mercedes-Benz 300 TE 6.0 AMG starts with Richard Buxbaum, the founder of AMG of North America. He was commissioned to build a V8 wagon in 1987, and since the car was ordered by a very wealthy customer, it featured a 6.0-liter engine with newly-developed 32-valve cylinder heads, which provided the driver with 375 hp (280 kW/380 PS).

The car caused an immediate sensation in the press, gaining the name “The Hammer,” but with the heads alone adding $65,000 to the price of the car, Buxbaum decided few others were likely to buy one. However, he thought he might be able to find enough customers to justify a limited series run if he put a 16-valve version into production.

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And so he bought this Mercedes 300 TE and used it as a prototype. In addition to the 310 hp (231 kW/314 PS) V8, it also got rolled fenders, a set of 16-inch AMG monoblock wheels (which have since been switched out for 17s), a stainless steel exhaust, a custom interior, and more.

It also made use of the limited-slip differential from an S-Class sedan, and had its springs chopped. On top of that, it received custom anti-roll bars, and all of it was done carefully in order to keep the self-leveling suspension working properly.

The modifications were well received by the likes of Car and Driver’s John Philips, who gave it its nickname, “The Mallet.” Even with the less powerful engine, it was said to have been able to outperform the contemporary Porsche 911 Carrera, Chevrolet Corvette, BMW M5, Lamborghini Jalpa, and even a Ferrari 412.

Sadly, the project never took off, and that makes this the only model of its kind, and one made shortly before AMG was brought in-house by Mercedes. As an important piece of AMG of North America history, and a completely unique vehicle, it’s expected to sell for quite a bit.

Offered without reserve at RM Sotheby’s Miami 2024 auction in Coral Gables, Florida, estimates suggest that the gavel will come down on “The Mallet” at between $300,000 and $400,000.