China's Geely in talks to take stake in Aston Martin: FT

Marco Green
January 14, 2020

Geely also owns Volvo. The shares of the company went into a tailspin after the profit warning falling almost 16 per cent.

There has been a statement from Aston, which is unsurprisingly non-committal: "We remain in discussion with potential strategic investors in relation to building longer term relationships which may or may not involve an equity investment".

There are several suitors in the frame, according to three people.

Aston Martin shares jumped as much as 20 per cent, and traded 13 per cent higher at 460.00 pence as of 4:29 p.m.in London.

Both parties have links to Daimler, the German owner of Mercedes-Benz that holds 5% of Aston and has the power to block any fresh investments in the company from another carmaker. The 2021 regulation changes coupled with the existing infrastructure of Racing Point would save a considerable amount of money when compared to starting a team from the ground and would be an extremely attractive proposition. Additional reports are also suggesting that Contemporary Amprex Technology, a Chinese battery maker, might be interested, though there's been no word from them yet either. Geely and Daimler run the Smart city vehicle brand as a joint venture out of China. Currently, the manufacturer hopes to debut in the history of the company crossover Aston Martin DBX. The SUV, which has already generated 1,800 orders, will go into production in the second quarter of this year.

A spokesman for Geely Europe declined to comment.

Other reports by Click Lancashire

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