Mercedes to increase Aston Martin share holding to 20% as part of new deal

Aston Martin to take further technologies from Mercedes in return for further shares in the financially battered British company

Aston Martin and Mercedes have signed a new technology agreement that could see Mercedes parent company Daimler acquire up to 20 per cent of the British brand, in a move that will see Aston gain access to the German company’s latest technologies. 

According to Aston Martin executive chairman Lawrence Stroll, the new agreement means Aston will gain access to Mercedes developed technology for plug-in hybrid and fully-electric vehicles - the latter currently a huge segment of Mercedes’ research and development costs, with several new vehicle platforms supporting EQ badged electric cars on the way.

The deal means that access to the Mercedes developed technologies will be traded in exchange for further shares in Aston Martin. It means Mercedes could own up to 20 per cent of Aston Martin in the years to come. 

According to Aston, the deal will allow the company to reduce “the costs and risks of developing” their own next-generation all-electric and hybrid tech, meaning it can “focus its investments in other areas and expand its product portfolio.”

The company is now targeting volumes of 10,000 cars sold a year by the 2024/25 financial year. So far in 2020, Aston Martin has delivered 2,752 cars - 39 per cent down on 2019 - while operating loss for the year so far stands at £229m. The company aims to have net income of £500m with interest, taxes, depreciation, and amortisation added back by the mid part of the decade. 

According to the brand’s latest financial statement, the company has a plan to refresh the entire front-engined sports car line-up, expand its SUV offering with another model to sit alongside the new DBX, and is still planning to launch a mid-engine range of cars.

According to new Aston Martin CEO and former AMG frontman Tobias Moers, Aston won't directly take Mercedes platforms and develop their own vehicles on them. Instead, the brand will leverage new drivetrain technology and incorporate it into new Aston Martin platforms. "Aston Martin is very efficient, as we proved with DBX, to bring a platform to life," he explained. 

The first plug-in hybrid Aston Martin is expected by 2023, widely expected to be a new variant of the DBX SUV. As for combustion engines, Aston intends to keep its V12 programme alongside further integration of Mercedes' 4.0-litre V8 engine - with plug-in power. It provides the company with "alternatives" to continuing development of its newly announced V6 hybrid powertrain, but Moers says it's "too early" to make a decision on whether to cancel that project. 

Executive chairman Stroll added: “This is a transformational moment for Aston Martin. It is the result of six months of enormous effort to position the Company for success to capture the huge and exciting opportunity ahead of us.

“In those six months, since I became Executive Chairman, we have made significant progress. We have appointed a world-class leadership team with deep experience of this industry. We have aggressively and successfully de-stocked the dealer network to rebalance supply to demand. We have strengthened the financial resilience of the business and have taken decisive action on costs.

“We have also very successfully launched the DBX. I am extremely pleased with the progress to date and that we are ahead of plan on timing, despite operating in these most challenging of times.

“Today, we take another major step forward as our long-term partnership with Mercedes-Benz AG moves to another level with them becoming one of the Company’s largest shareholders.”

Do you think the Mercedes agreement is a good think for Aston Martin? Let us know your thoughts below...

Recommended

Only special standalone Mercedes-AMG electric cars to get ‘63’ badge
AMG Munich
Mercedes

Only special standalone Mercedes-AMG electric cars to get ‘63’ badge

The brand's current EVs are too heavy to wear AMG's top-line boot badge, with the high-performance 63 tag to be reserved for all-electric replacements…
10 Sep 2021
New Concept Mercedes-Maybach EQS luxury electric SUV revealed
Mercedes-Maybach EQS - Munich front
Maybach

New Concept Mercedes-Maybach EQS luxury electric SUV revealed

The Concept Mercedes-Maybach EQS has been revealed at the 2021 Munich Motor Show, and is expected to morph into a flagship version of the upcoming EQS…
6 Sep 2021
New Mercedes Concept EQG previews electric G-Class due in 2024
Mercedes Concept EQG - Munich front
Mercedes

New Mercedes Concept EQG previews electric G-Class due in 2024

The new Mercedes EQG electric G-Class will make use of a ladder frame chassis and will boast the same off-road prowess as its petrol and diesel counte…
6 Sep 2021
New 2022 Mercedes EQS SUV spied in lighter camouflage
Mercedes EQS SUV
Mercedes

New 2022 Mercedes EQS SUV spied in lighter camouflage

Mercedes has announced the EQS SUV will make its debut next year – and there’s a Maybach version in the pipeline
28 Jul 2021

Most Popular

'The death of cheap cars will be a travesty for personal mobility'
Opinion cheap cars
Opinion

'The death of cheap cars will be a travesty for personal mobility'

Our appetite for small, cheap cars is as strong as ever - although Mike Rutherford warns they may no longer be profitable
12 Sep 2021
New Toyota RAV4 Adventure heads up 2022 model refresh
Toyota RAV4 Adventure
News

New Toyota RAV4 Adventure heads up 2022 model refresh

The rugged Toyota RAV4 Adventure targets lifestyle buyers with a tough-looking new front bumper and interior tweaks
14 Sep 2021
E10 petrol explained: UK prices, checker tool and is it OK for your car?
Petrol pump
News

E10 petrol explained: UK prices, checker tool and is it OK for your car?

E10 petrol is up to 10 per cent ethanol and is available at UK fuel stations now as part of the bid to cut CO2 emissions
1 Sep 2021