AB Motorfabriken i Göteborg (AMG) was founded in 1897 in Gothenburg

Gothenburg

Gothenburg is the second-largest city in Sweden and the fifth-largest in the Nordic countries. Situated on the west coast of Sweden, the city proper has a population of 519,399, with 549,839 in the urban area and total of 937,015 inhabitants in the metropolitan area...

, Sweden

Sweden

Sweden , officially the Kingdom of Sweden , is a Nordic country on the Scandinavian Peninsula in Northern Europe. Sweden borders with Norway and Finland and is connected to Denmark by a bridge-tunnel across the Öresund....

 as a producer of stationary engine

Engine

An engine or motor is a machine designed to convert energy into useful mechanical motion. Heat engines, including internal combustion engines and external combustion engines burn a fuel to create heat which is then used to create motion...

s. In 1899 the company also began producing boat engines and started looking into automobile

Automobile

An automobile, autocar, motor car or car is a wheeled motor vehicle used for transporting passengers, which also carries its own engine or motor...

 manufacturing. They went to France

France

The French Republic , The French Republic , The French Republic , (commonly known as France , is a unitary semi-presidential republic in Western Europe with several overseas territories and islands located on other continents and in the Indian, Pacific, and Atlantic oceans. Metropolitan France...

 and looked for suitable models, settling on the Brasier

Brasier

Brasier was the successor of the early French Richard-Brasier automobile maker that had been in business since 1902. The name of the make was simplified to Brasier when Georges Richard left in 1905 to found Unic. Before World War I, several twin, four and six-cylinder models were offered...

. They imported Brasiers until their own models could be produced.

In 1903 their first automobile was made. Except for engine, ignition system

Ignition system

An ignition system is a system for igniting a fuel-air mixture. Ignition systems are well known in the field of internal combustion engines such as those used in petrol engines used to power the majority of motor vehicles, but they are also used in many other applications such as in oil-fired and...

, carburetor

Carburetor

A carburetor , carburettor, or carburetter is a device that blends air and fuel for an internal combustion engine. It is sometimes shortened to carb in North America and the United Kingdom....

, and tires, the car was made entirely of Swedish products. The engine used was the German Fafnir

Fafnir (automobile)

Fafnir was a German engine and vehicle manufacturer based in Aachen. They made a range of cars between 1908 and 1926.The company was founded in 1894 producing needles. With the growth of the bicycle industry, they started to make wheel spokes...

, but converted to be water-cooled. Transmission

Transmission (mechanics)

A machine consists of a power source and a power transmission system, which provides controlled application of the power. Merriam-Webster defines transmission as: an assembly of parts including the speed-changing gears and the propeller shaft by which the power is transmitted from an engine to a...

 was via propshaft, rather than chain or belt as was the norm. The first car was driven from Gothenburg to Stockholm

Stockholm

Stockholm is the capital and the largest city of Sweden and constitutes the most populated urban area in Scandinavia. Stockholm is the most populous city in Sweden, with a population of 851,155 in the municipality , 1.37 million in the urban area , and around 2.1 million in the metropolitan area...

for a car exhibition. However, finances were grim and only ten cars were built. Production ended in 1906.