Daimler and AMG Get Up To 5 Percent of Aston Martin in Return For Engines

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Technical partnerships between competing brands is becoming a key part of surviving the crazy ups and downs of the automotive realm. We’ve seen it with Toyota Toyota and Subaru Subaru , Toyota and BMW BMW , Renault Renault and Nissan, and so on. To date, we’ve had yet to see a splash of a deal between two luxury automakers, but that is now history, as Daimler, AMG and Aston Martin have entered an interesting quid pro quo deal.

Now, the partnership between Daimler and Aston Martin has been through the rumormill before. At one point a rumor also incorrectly claimed that Aston Martin’s future depended on this possible partnership with Daimler . Well, that turned out to be untrue, of course, but this deal will certainly speed things along for the British sports car builder.

Daimler will receive up to 5-percent, non-voting shares in Aston Martin without cash consideration in return for helping build bespoke V-8 engines that will see use future Aston Martin models. The goal of these new engines is to deliver high performance and improved fuel efficiency. The shares will be awarded in stages that correspond to the progress made in this project, and the shares will allow Daimler to observe Aston Martin operations, but they will not have any direct control over Aston.

Daimler will be the fourth company to own Aston Martin shares — the other three are Prime Wagon, Adeem Investment and Investindustrial. Unlike the other three, Daimler also plans to start an additional cooperation to supply of electric components, plus a few other areas of cooperation that will be announced in the future.

Click past the jump to read more about the revived Lagonda - one of the first models rumored to get the new V-8 engine.

2016 Aston Martin Lagonda

Aston Martin Lagonda

Aston Martin unveiled thel Lagonda SUV concept back in 2009, and since then the production version has seen its fair share of ups and downs. There were moments were the model was believed to be offered as an SUV, others as a sedan, while other times it was rumored it will never happen at all.

Still, Aston Martin said earlier this year that a possible Lagonda SUV could be the perfect way to boost sales on markets like China where large cars are a must. So, a production version Lagonda SUV should happen just in time for the 2016 model year.

Considering the new partnership we expect the Lagonda to be powered by this newly developed V-8 engine and not by the rumored V-12 engine.

Press Release

Daimler AG and Aston Martin Lagonda Ltd. have signed an agreement for a significant technical partnership between Daimler, Mercedes-AMG GmbH, a 100% subsidiary and high-performance brand of German automotive corporation Daimler AG, and Aston Martin.

Following the signing of a Letter of Intent in July this year, the two companies have continued to work together, exploring opportunities for co-operation and these discussions have resulted in the signing of definitive agreements.

The technical partnership will allow Mercedes-AMG and Aston Martin to develop bespoke V8 engines supporting Aston Martin’s launch of a next generation of models that will incorporate cutting edge technology and newly-developed engines, combining high performance and fuel efficiency.

Daimler will receive up to five percent non-voting shares in Aston Martin without cash consideration in several steps following the progress of the technical partnership. At the same time, the company will receive an observer status on the Aston Martin Holdings board. Daimler joins Aston Martin’s existing shareholder body that includes Prime Wagon, Adeem Investment and Investindustrial.

The parties are working to conclude the terms of an additional cooperation for the supply of electric/electronic (e/e) components. Furthermore, the two groups will investigate additional areas of cooperation in the future. Aston Martin will continue to manufacture all of its sports cars at its Gaydon headquarters in Warwickshire, England.

Tobias Moers, Chairman of the Management Board of Mercedes-AMG GmbH: “By signing the Umbrella Agreement and the Engine Agreement both parties have agreed to this technical partnership: Mercedes-AMG will provide the British icon Aston Martin with engines for their forthcoming sports cars. At our company´s headquarters in Affalterbach we are proud to work with Aston Martin – this agreement is a real win-win situation for both sides.”

A spokesperson for the Aston Martin board said: “Our company is this year celebrating its centenary, and the partnership agreed today underpins prospects for Aston Martin’s bright, vibrant and dynamic second century in the sports car business. This strategic collaboration for Aston Martin will, in our next generation of luxury sports cars, offer our customers increased performance and state-of-the-art features whilst retaining the unique character and style of an Aston Martin.”


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