Friday, June 18, 2021
News Mercedes Picking Up Stake in Aston Martin in Exchange for High Tech

Mercedes Picking Up Stake in Aston Martin in Exchange for High Tech

Mercedes-Benz shares its new tech for shares in Aston

  • Mercedes-Benz could up stake to 20 percent of Aston

  • In exchange Aston gets new tech including electrified drivetrains


Things are looking up again at Aston Martin despite the pandemic, as the automaker is about to get a big dose of investment and partnership help from Mercedes-Benz.

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.

Trending Now

Toyota Mirai Shatters One-Tank Hydrogen Distance Record

First FCEV to break 1,000 km on a tank Full tank ready to go five minutes after record run A Toyota Mirai has set...

All-New MK8 Volkswagen Golf GTI Will Be The Best-Driving Ever

The GTI will be delivered with a standard torque-sensing limited-slip differential. The new GTI will offer improved driving dynamics. It’s almost difficult to believe...

All-New 2022 Toyota Tundra Will Get New iForce Engine

By the looks of it, it will be a V6. The first all-new Tundra in almost 15 years will debut soon. There’s a race...

Subaru Adds Onyx to 2022 Ascent, Rest of Line Keeps Same Price

Ascent starts from just over $32k 2022 models set to hit dealers in summer For 2022, the Subaru Ascent is getting a new Onyx...

Fastest Selling New And Used Cars Last Month Could Not Be More At Odds

New car inventory continued to be low in May driving up used car values. The average time to sell a new car in...

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.