Mercedes ups stake in Aston Martin - boosts technical cooperation

Ruben Hill
October 28, 2020

Further technology packages are planned, but the companies noted they "need to agree upon the scope of the technology to be made available to Aston Martin, the respective value and the piece prices of components and systems".

Daimler unit Mercedes-Benz is to lift its stake in Britain's Aston Martin to up to 20% by 2023, making it one of the struggling British carmaker's largest shareholders, Aston said on Tuesday.

Under the agreement, Mercedes will own up to 20% of Aston Martin, compared to 2.6% now. After Canadian billionaire Lawrence Stroll bailed out the automaker early this year, the company poached the head of Mercedes's high-performance AMG brand to be its new chief executive officer and potentially seek additional funding. Instead, it will be done gradually over the next three years.

"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". This deal saw the German company receive an equity participation of 5%, which later became 2.6% following Aston Martin's initial public offering (IPO) in 2018 and various further financing rounds.

Mercedes-Benz taking bigger stake in Aston Martin in exchange for sharing more tech
Mercedes seals deal to take up to 20% stake in Aston Martin

"Through this new expanded agreement, we secure access to world-class technologies to support our long-term product expansion plans, including electric and hybrid powertrains and this partnership underpins our confidence in the future". Better yet, we might see more Mercedes-powered Astons in the future.

By expanding a tie-up with Daimler that started in 2013, Aston Martin will both fix its balance sheet and better position for the shift away from internal-combustion engines.

In return, Aston Martin gets access to Daimler's cutting-edge technology, including for electric and hybrid vehicles.

"Today's expansion of our partnership with Mercedes-Benz AG is a critical step towards achieving our goals for Aston Martin".

Other reports by Click Lancashire

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