German media is reporting the newly founded Mercedes-AMG division is cooking up competitors for the Audi TT and Porsche Panamera.

German media is reporting the newly founded Mercedes-AMG division is cooking up competitors for the Audi TT and Porsche Panamera.

This isn't the first time we are hearing rumors about an Audi TT rival wearing the three-pointed star, but now we have more details as Auto Motor und Sport says it will use the MFA2 platform which will underpin the next generation A-Class. Daimler's entry-level model is expected to spawn a more stylish and potent derivative prepared by Mercedes-AMG set to join the range before the end of the decade and it’s allegedly being developed to go head to head with the Audi TT Coupe while a soft top derivative is also in the works to compete with the TT Roadster.

Moreover, Mercedes-AMG is also preparing an adversary for the Porsche Panamera and it is believed the four-door model in question will be based on the next generation E-Class but with a significantly differentiated design. The report goes on to specify that it could be out as early as next year together with the new E-Class (W213).

Note: 2015 Mercedes-AMG GT Edition 1 pictured.

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Mercedes-AMG reportedly working on Audi TT and Porsche Panamera rivals