As a part of this partnership, Mercedes-Benz will have up to 20% stakes in Aston Martin in exchange of technology
Words by Chinmay Chaudhary
Mercedes-Benz and Aston Martin in 2013 had entered in a strategic cooperation for the supply of the Mercedes-Benz V8 AMG engine and components for the E/E (electrical) architecture in return of an equity participation of 5% in Aston Martin. Fast forward to 2020, both the car makers have sealed on taking the partnership ahead with Mercedes-Benz agreeing grant access to a hoard of their technologies which includes the next generation hybrid and electric powertrains along with providing other vehicle components and systems.
The access to the new shares in Aston Martin will be granted in steps over the next three years with a total value of GBP 286 million. The new shares that will be issued will take the Mercedes-Benz holdings up to 20% of Aston Martin’s common equity. Currently this is the maximum percentage that Mercedes-Benz plans to hold stakes in Aston Martin. The first tranche for the technology package has already been agreed at GBP 140 million and these shares will take the Mercedes-Benz’s stakes to 11.8%. For the further tranches, both the car makers are underway in agreeing upon the scope of technology to be made available to Aston Martin. The remaining stakes will be issued to Mercedes-Benz by 2023 in consequent tranches.
Wolf-Dieter Kurz, Head of Product Strategy at Mercedes-Benz Cars, commented: “We already have a successful technology partnership in place with Aston Martin that has benefited both companies. With this new 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. The supply arrangements for these new technologies will be on agreed commercial terms. We look forward to continuing to work together with Aston Martin and we wish the company every success in its next stage of growth.”