Meeting of Minds: Mercedes offers Aston Martin new tech for a stake in the company
The move saves a ton of headache and resources for Aston Martin as they are a relatively smaller production house compared to the Goliath that is Mercedes-Benz.
Aston Martin has been using AMG’s V8 engines and Mercedes’s previous generation of MBUX infotainment systems in their cars for a while now, and it seems that the relationship between the two carmakers has only turned sweeter with a deal which will grant the British marque access to the latest and greatest hybrid systems and powertrains developed by Mercedes-Benz.
The move saves a ton of headache and resources for Aston Martin as they are a relatively smaller production house compared to the Goliath that is Mercedes-Benz. It will help Aston Martin focus on the things that make their cars so iconic and desirable in the first place: drop-dead gorgeous looks, luxurious interiors, and exhaust notes that make hearts race from a while away, especially from Aston’s very own, and greatly acclaimed V12 engines.
However, It turns out the relationship between the two of the great luxury automakers goes even further than just technical components. Andy Palmer had stepped down as CEO and was succeeded by none other than former Mercedes-AMG CEO Tobias Moers. More recently, Formula 1 man Lawrence Stroll has acquired his fair share of the all-sweet pie as well.
Mercedes-Benz originally had a 2.6% share of Aston Martin’s holding equity, while The new shares issued to the German automaker will take its holdings up to a 20% maximum. As it’s simply a technical alliance, there are no plans to further increase Mercedes holdings in Aston Martin in the future.
“We already have a successful technology partnership in place with Aston Martin that has benefited both companies,” said Wolf-Dieter Kurz, Head of Product Strategy at Mercedes-Benz cars. “With this new expanded partnership, we will be able to provide Aston Martin with access to new cutting-edge technologies and components, including next-generation hybrid and electric drive systems.”
A total value of $373 million will be required to achieve the maximum agreed shareholding of 20%. As such, the new shares will be issued in subsequent tranches by 2023 which will be choreographed to the release of technology packages on Mercedes’ end.
