Mercedes acquires major stake in Aston Martin in new technical partnership

0
55


Mercedes-Benz will take a major stake in Aston Martin as part of a “game-changing” strategic technology deal that will underpin a plan for the UK company to double sales by 2025.The deal expands the existing relationship between the two companies and will include Aston Martin’s access to Mercedes technology – including electric and hybrid powertrains – which will be a key part of its expansion plans.

In a statement, Aston said the deal included “the powertrain architecture (for conventional, hybrid and electric vehicles) and a forward-looking electric / electronic architecture, for all product launches through 2027 ”.

With the new deal in place, Aston Martin aims to sell around 10,000 vehicles per year by 2025 and targets revenue of around £ 2bn and EBITDA profits of around £ 500m. pound sterling. For comparison, the brand sold 5,862 vehicles in 2019.

As part of the deal, Mercedes-Benz will gradually increase its stake in Aston Martin to a maximum of 20%, which will give a welcome boost to Aston’s investments and make the German giant one of the main shareholders of Aston. The technology will be provided “on commercial terms”. Mercedes previously held around 5% of Aston Martin’s shares as part of a deal involving its AMG performance arm developing a bespoke V8 for Aston.

Lawrence Stroll, whose investment consortium completed its Aston Martin buyout earlier this year, called the deal a “moment of transformation.” He added, “With this new expanded agreement, we are securing access to world-class technologies to support our long-term product expansion plans, including electric and hybrid powertrains, and this partnership strengthens our confidence in the future.

“It really is a game-changer. We now have the right team, the right partner, the plan and the funding in place to transform the company into one of the world’s leading luxury car brands.

Aston Martin’s new CEO, Tobias Moers, who joined the company from his previous role as Mercedes-AMG Performance Division Head, said: “We have updated our plans for the company, incorporating the benefits of our strengthened partnership that we are announcing today. We aim for significant growth and expansion of margins in the medium term, not only through product expansion, but also by integrating a strategy to deliver a level of operational excellence and efficiency in all aspects of the organization. .

“The capabilities of Mercedes-Benz AG technology will be fundamental to ensuring the competitiveness of our future products and will allow us to invest effectively in areas that truly differentiate our products.

Mercedes-Benz Chief Product Officer Wolf-Dieter Kurz said: “Through this new and expanded partnership, we will be able to provide Aston Martin with access to new technologies and powertrain components and software from state-of-the-art, including next-generation hybrid and electric drive systems. Access to this technology and components will be provided in exchange for new shares in Aston Martin. ”

Aston launched the DBX SUV this year, which will play a major role in growing sales going forward. The new deal is a huge boost to Aston Martin’s future plans, giving it access to proven electric vehicle technology without the need to develop its own EV systems. Since its takeover, Stroll has already suspended its plans to relaunch the Lagonda brand as a range of luxury electric vehicles.

LEAVE A REPLY

Please enter your comment!
Please enter your name here