Updated: Mercedes won’t be taking any chances in the performance stakes with its new super-sports car following the disappointing results of its SLR supercar, which rarely comes first in comparo reviews.

The new model is set to be slotted in between the SLR and SL, and could feature a 700hp version of the 6.2L AMG V8 engine according to Germany’s Auto Motor und Sport. However, we think it'd probably be closer to 600hp so as to not step on the toes of the SLR flagship. The source also reports that it might carry the name ‘SLC’ and could also feature a biturbo V8 model as well.

The SLC will share much in common with the next-generation SL Roadster, including most of the interior but will get its own carbon-fiber roof.

Original: Mercedes-Benz will team up with its official DTM partner, HWA AG, to co-develop and build its new super-sports car as well as several other high-end performance models. The luxury brand is reportedly disappointed by the performance of its SLR McLaren when compared against its main rivals, and this is said to be a key reason why it sought a new partner to develop its latest sports car, reports Automotive News Europe.

In steps HWA. The motorsports company was formed by Hans-Werner Aufrecht in 1967, one of the founders of AMG, and is best known for its HWA Racing team, which competes in the German touring car series with the CLK-DTM.

The new model will be a race car built for the road and is likely to be powered by a higher performance version of the hand-built 6.2L V8 engine from AMG. To make it road-legal, the car will be officially sold under the Mercedes AMG label, but it will remain a genuine HWA race-developed product. Expect to see a concept version at next year’s Geneva Motor Show.

HWA will also be investing €4.5 million to expand its manufacturing facilities, which will see its current plant extend from 1,200 to 3,600 square meters. HWA spokesman Hans Jürgen Matheis revealed to The Insider that the motorsports company always had the ambition to prove to Mercedes that it could build a better road-car than McLaren, and now it finally gets its chance.

McLaren fans shouldn't be completely disappointed. Substantial cash flows from its successful F1 team and the freeing up of resources from this latest announcement could eventually pave the way for the development of a successor to the original McLaren F1.