As the Deutsche Tourenwagen Meisterschaft/ITC had folded in late 1996, with both remaining competitors Opel and Alfa Romeo leaving due to the high costs of their 4WD designs, Mercedes-Benz had no top series to compete in. With the success of the BPR Global GT Series leading to the FIA taking over and turning it into an international series known as the FIA GT Championship, Mercedes-Benz saw an opportunity to go against manufacturers like Porsche and Ferrari.
Following the design that Porsche had laid out with their 911 homologation special, Mercedes-AMG was tasked by Mercedes-Benz with creating an extreme racing car that still maintained some elements of a normal street legal car. AMG's designers created a car which shared some design elements with the Mercedes-Benz CLK, yet had all the standard features of a racing car underneath. A Mercedes-Benz M120V12 engine would be at the heart of the car, mounted behind the cockpit. The bodywork would be made entirely of carbon fiber, and would feature many aerodynamic design elements and cooling openings in order to survive on the race track.
To test the CLK GTR before the first chassis were built, Mercedes-AMG actually took an unusual measure. Through secrecy, Mercedes-AMG was able to purchase a disused McLaren F1 GTR, the defending BPR GT series champion, from Larbre Compétition. This purchase first allowed Mercedes-AMG to see the kind of lap times that their competitors could run, to serve as a measurement of the CLK GTRs abilities. However, more importantly, Mercedes-AMG set about modifying this F1 GTR by attaching bodywork that was meant to go on the CLK GTRs. This allowed Mercedes-AMG to be able to perfect the aerodynamics of the car before it had even been built.
Upon completion of the first two prototypes a mere 128 days after the initial drawings had been made, the CLK GTRs were entered into the 1997 FIA GT Championship season, debuting at the season-opener at one of Mercedes-Benz's home tracks, the Hockenheimring. Unfortunately the new cars were not able to shine, as brake problems eliminated one car after five laps, and the other finished over 20 laps behind the winning McLaren. However by the next round at Silverstone, the CLK GTR began to show its pace, finishing less than a second behind the winning McLaren. By the fourth round, returning to Germany for the Nürburgring, a third CLK GTR was added to the team. In this race, Mercedes-Benz successfully outperformed the fleet of McLarens, taking first and second places. The team would finish out the season with five more wins, at A1-Ring, Suzuka, Donington, Sebring, and Laguna Seca, allowing them to secure the team championship as well as the drivers championship for Bernd Schneider.