Mercedes-Benz Agrees to Electrify Aston Martin
Back in 2013, Mercedes-Benz agreed to supply AMG V8 engines to Aston Martin in exchange for a 5-percent stake in the British luxury brand. Seven years later, following Aston Martin’s initial public offering and further rounds of financing, the German automaker holds just 2.6 percent.
However, things are about to change yet again.
- Also: All Mercedes-AMG Models to Offer a Plug-in Hybrid Variant
- Also: Billionaire Lawrence Stroll Shifts Aston Martin into Fast Lane
As part of a new strategic technology agreement announced this week, Mercedes-Benz will grant Aston Martin access to a range of advanced technologies, including next-generation hybrid and electric powertrains, as well as other vehicle components, systems and software.
In return, Aston Martin will issue new shares in several stages over the next three years, up to a total value of $494 million. These new shares will take Mercedes-Benz’s holding up to a maximum of no more than 20.0 percent.
“Mercedes-Benz AG has no intention to increase its holding in Aston Martin beyond this level,” the statement says.
Times are tough for Aston Martin. Sales of its sports cars are low and inventories are high. The launch of the all-new DBX crossover and the lifeline thrown by Canadian billionaire Lawrence Stroll are slow to make an impact. The latter injected nearly $350 million for 16.7 percent of the company at the beginning of the year.
On August 1st, former AMG boss Tobias Moers replaced Andy Palmer as CEO of Aston Martin.
When you look at the current lineup, both the Vantage and DB11 coupes as well as the DBX offer an AMG V8. The Rapide E electric sedan (pictured above) was scrapped as the project would have been too costly, but this new partnership will allow Aston Martin to finally kick off its electrification plans.
