Mercedes-Benz to acquire more stake in Aston Martin
KUALA LUMPUR: Mercedes-Benz already holds a small 2.3 percent stake in the luxury car brand, Aston Martin, but it is now set to acquire a sizable chunk in the management of British marque. Well, the news is no big surprise for the ones who have been spectating the company's financial struggle over the past few years.
The new deal is a win-win situation for both auto giants under which the British automaker will get access to Mercedes’s latest and greatest hybrid systems and electric powertrains in exchange for a bigger stake. And, supplying these technologies to Aston Martin will help the German automaker in generating additional economies of scale.
The proceedings are firmly in the spotlight right now but in fact, the merger has been a slow build and not a sudden decision. Aston is using the AMG V8 engines since 2013.
“We already have a successful technology partnership in place with Aston Martin that has benefitted both companies. With this newly 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,” Mercedes product chief Wolf-Dieter Kurz said in a statement.
According to the declared plan, Mercedes will gradually increase its ownership by up to 20 percent. For this, a total value of £286 million will be required. The new shares will be issued in several portions by 2023 and will be tied to the release of technology packs. Mercedes states that it “has no intention to increase its holding beyond this level.”
Other than technical components, Mercedes-AMG's former CEO, Tobias Moers now heads Aston, replacing Andy Palmer, after a successful run at Daimler's performance vehicle division.
With the new deal in place, the British automaker has plans to sell almost 10,000 vehicles a year by 2025. And, in terms of revenue, it expects a £2 billion mark with EBITDA profits of around £500 million. Last year, the brand sold a total of 5,862 vehicles.
Also read: Mercedes-Benz announces expansion of EQ range, six new models confirmed
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