Mercedes-Benz could up stake to 20 percent of Aston
In exchange Aston gets new tech including electrified drivetrains
Mercedes made the announcement earlier today that it would be expanding and enhancing its technology partnership with Aston, and that will give Aston access to new tech and hardware from the larger automaker including electronics, powertrains, and electrification. It’s not coming for free, of course, as part of the deal Mercedes will raise its stake in Aston Martin up to a maximum of 20 percent, up from a current 2.6 percent.
Benz says that the three-year ownership increase has a total value of £286 million, (CAD 440m), and it will be through new shares issued by Aston. Mercedes said it has no plans to increase its stake past that level.
Wolf-Dieter Kurz, head of product strategy at Mercedes-Benz, said that this will give Aston Martin “access to new cutting-edge technologies and components, including next generation hybrid and electric drive systems.”
Aston went public just two years ago and has since struggled with sales of its core lineup of sports cars as well as having the massive expense of bringing the DBX crossover to market. The company was said to be near closure at the start of the year when a consortium lead by Canadian billionaire Lawrence Stroll invested $316 million into the automaker to acquire a 16.7 percent stake. As part of that deal, former Mercedes-AMG CEO Tobias Moers took over the top job at the British automaker.
Mercedes-Benz and Aston Martin first began working together back in 2013, when it was arranged to start using AMG engines in the British vehicles, though a Mercedes shift toward smaller engines was said to put some strain on the relationship. This latest agreement would seem to end any speculation as to how the two automakers are currently getting along.