Daimler to get 5% share in exchange for engines, electronics and electrical components
Following the signing of a letter of intent in July, Daimler AG and Aston Martin Lagonda Ltd. have finalized their technical partnership agreement. The deal sees the German automaker receiving a 5% equity of Aston Martin in exchange for engine supply from Mercedes-AMG as well as supply of electric and electronic components.
"Our company is this year celebrating its centenary, and the partnership agreed today underpins prospects for Aston Martin’s bright, vibrant and dynamic second century in the sports car business. This strategic collaboration for Aston Martin will, in our next generation of luxury sports cars, offer our customers increased performance and state-of-the-art features whilst retaining the unique character and style of an Aston Martin," said a spokesperson for Aston Martin.
The deal allows Aston Martin access to Mercedes-AMG to develop bespoke V8 engines supporting the British sportscar maker’s next generation of models which will be based on new platforms that incorporate advanced technology and newly-developed engines, combining high performance and fuel efficiency. Aston Martin will continue to manufacture all of its sports cars at its Gaydon headquarters in Warwickshire, England.
"By signing the Umbrella Agreement and the Engine Agreement both parties have agreed to this technical partnership: Mercedes-AMG will provide the British icon Aston Martin with engines for their forthcoming sports cars. At our company’s headquarters in Affalterbach we are proud to work with Aston Martin - this agreement is a real win-win situation for both sides," said Tobias Moers, Chairman of Mercedes-AMG.
Daimler will join shareholders Prime Wagon, Adeem Investment and Investindustrial as an observer on the holdings board with its 5% non-voting shares in Aston Martin. The equity will be given following the progress of the technical partnership.