HWA AG was established in 1999 following the acquisition of a majority stake in AMG by DaimlerChrysler AG. As part of that transaction, AMG's motor racing department and portions of its customised vehicle construction business were separated and transferred into the newly formed HWA AG. Aufrecht, who had built AMG into one of motorsport's most respected tuning and competition brands, retained operational control of this racing and engineering entity.
Between 1998 and 1999, HWA carried out the production of the Mercedes-Benz CLK-GTR Straßenversion road car, completing 20 examples of the homologation special. A further six roadster variants were subsequently built from remaining spare parts in 2002.
HWA's primary responsibility through the 2000s and into the 2010s was as the operational arm of the Mercedes-AMG factory programme in the DTM. The company managed car preparation, logistics, and technical development for Mercedes' works entries in the series, contributing to multiple drivers' and manufacturers' titles during the period when Mercedes was the dominant force in German touring car racing. This relationship made HWA one of the most influential behind-the-scenes organisations in European motorsport.
HWA entered Formula E for the 2018–19 season as an independent entrant ahead of Mercedes taking over an official capacity the following year. The team's drivers for that debut campaign were Gary Paffett, the reigning DTM champion, and Stoffel Vandoorne, a former McLaren Formula One driver. For the 2019–20 season, Mercedes joined Formula E officially by assuming the HWA entry and rebranding it as the Mercedes-EQ Formula E Team, ending HWA's tenure as the standalone Formula E operator.
In October 2018, HWA was named among the founding ten teams for the inaugural season of the rebranded FIA Formula 3 Championship, which began in 2019. Simultaneously, in January 2019, the team entered into a partnership with Arden International for the FIA Formula 2 Championship. In October 2019, following Arden's withdrawal, HWA took over the entry outright for the 2020 season, naming Artem Markelov — an incumbent Arden driver — as its first Formula 2 signing.
HWA competed in Formula 3 for three seasons, claiming four wins and ten podiums during that span before withdrawing from the championship in October 2021. The team's assets in that category were purchased by Van Amersfoort Racing.
Beyond team management, HWA AG has functioned as a development and production partner for the automotive and motorsport industries more broadly. For the 2024 FIA World Endurance Championship, HWA provided the research and development work for the Isotta Fraschini Tipo 6 LMH-C's 3.0-litre single-turbo V6 engine, which made its competitive debut at the season-opening 2024 Qatar 1812 km race.
HWA AG occupies a distinctive place in motorsport as an organisation that bridged factory motorsport management, independent team operations, and contracted engineering services. Its stewardship of the Mercedes-AMG DTM programme for over a decade was central to the manufacturer's success in Germany's premier touring car series, while its subsequent ventures into Formula E and the junior single-seater categories extended the Affalterbach company's reach across multiple disciplines. The company's origins as a spin-off from the AMG sale give it a direct lineage to the founding partnership between Hans-Werner Aufrecht and Erhard Melcher that created one of motorsport's most iconic names.