Aston Martin To Inherit Mercedes Tech, But The Cost Could Be Too High
Aston Martin is getting hybrid and EV tech from Mercedes in exchange of a 20-percent shareby Ciprian Florea, on
Back in 2013, Aston Martin and Mercedes-Benz entered a cooperation through which the British company gained access to the 4.0-liter V-8 AMG engine and various components for its production models. In exchange, Mercedes-Benz received an equity participation of five-percent in Aston Martin, which eventually transformed into a 2.6-percent stake. Earlier in 2020 we heard rumors that Aston Martin needs to develop its own engine as Mercedes is slowly phasing out the AMG V-8, but it seems that the companies are actually taking their partnership further. Aston Martin is set to gain access to new Mercedes technologies, which in turn will receive new shares in the British firm.
Aston Martin will use hybrid and all-electric technology from Mercedes-Benz
The British automaker will be granted access to all sorts of new tech over the next three years. According to Mercedes-Benz, Aston Martin will have access to the brand’s next-generation hybrid and electric powertrains, as well as "other vehicle components and systems." This basically means that as the 4.0-liter V-8 engine that Aston Martin currently borrows from Mercedes will be phased out, it will be replaced with hybrid and electric drivetrains. There’s no specific information on whether this also means that Aston Martin will soon use mild hybrid system that include the V-8 engine, but it’s a possibility.
Mercedes will transfer technology to Aston Martin in several tranches by 2023, most likely as they become available in new Mercedes-Benz cars. In return, Mercedes-Benz will receive new shares in Aston Martin. The shares will also be transferred gradually, as Aston Martin receives technology packages from the German firm.
Mercedes-Benz will eventually own 20 percent of Aston Martin
In exchange for the drivetrain components and technology, Mercedes-Benz will get a sizable portion of Aston Martin shares. Mercedes’ shareholding in Aston Martin will increase up to a "maximum of no more than 20 percent," which means that the Germans will get an additional 17.4-percent stake by 2023. Mercedes-Benz made it clear that "it has no intention to buy more than 20 percent" in Aston Martin, so there won’t be a takeover in the future. The shares that Aston Martin will transfer to Mercedes-Benz are worth about £286 million, which converts to around $370 million as of October 2020.
The main terms and conditions for the first technology package and share transfer have already been agreed. According to them, Mercedes-Benz will increase its shareholding to 11.8 percent in the first stage. The value of the first tranche is £140 million (about $181 million). The first exchange will probably happen in 2021.
The cooperation between Mercedes-Benz and Aston Martin goes back to 2013 and resulted in the British firm gaining access to electrical components for its new platform and the twin-turbo, 4.0-liter V-8 engine developed by AMG. In return, Mercedes-Benz AG received an equity participation of five percent in Aston Martin. Following Aston Martin’s IPO in 2018 and various financing rounds, Mercedes-Benz owns a 2.6-percent stake as of October 2020.
The AMG M177 V-8 engine debuted in 2015 in the Mercedes-AMG GT sports car and eventually found its way into AMG versions of the C-Class, E-Class, and S-Class, as well as SUV models from the GLC, GLE, and GLS lineup. The same engine motivates the boxy AMG G 63, the AMG GT 4-Door Coupe, the Mercedes-Maybach GLS 600, and the upcoming AMG S 63e hybrid. Aston Martin is offering it in all of its models save for the DBS Superleggera. The AMG V-8 powers the Vantage, DB11, and the DBX.
Is Aston Martin going hybrid with help from Mercedes-Benz?
There’s no official confirmation, but this is probably the plan. Aston Martin will probably gain access to the new hybrid setup that Mercedes-Benz is getting ready to introduce with the upcoming AMG S 63e. A replacement for the old S 63, the S 63 will retain the twin-turbo, 4.0-liter V-8, but it will combined it with an electric motor. Rumor has the S 63e will deliver around 700 horsepower, with more than 130 horses coming from the electric motor. That’s powerful enough for an Aston Martin and the combo might even replace the company’s twin-turbo, 5.2-liter V-12. There are also rumors about an even more powerful AMG hybrid called the S 73e. This version would feature the same V-8 - electric setup, but updated to an impressive 805 horsepower. This powertrain could also find its way into range-topping Aston Martin models or even future sports cars.