Nissan Exec’s Move to Aston Martin Could Spark Sale to Daimler
Former Nissan senior executive Andy Palmer proposed buying a stake in Aston Martin when he was still with the Japanese automaker. A report from Reuters indicated that before Palmer takes the reigns as CEO of Aston Martin later this month, he was in the ear of Nissan CEO Carlos Ghosn about investing in the British company.
Nissan ultimately turned down Palmer’s proposal, sources told Reuters.
Palmer’s move to Aston Martin comes after he successfully brokered an alliance between the company’s luxury brand Infiniti and Daimler, which, incidentally has a five-percent stake in Aston Martin. This automotive merry-go-round is a tad bit confusing, but it’ll make sense if recent reports of Daimler buying out Aston Martin come to fruition.
Aston Martin’s one of the last luxury car brands to not have a parent auto group. That’s kept the company out of important funding that it otherwise could have used to stay competitive in a market that’s becoming more saturated as rival brands, like Fiat-owned Maserati, continue expanding their lineups.
In its current state, Aston Martin is continuously losing money and needs new investors. Having Palmer run the show could serve as a precursor to Daimler taking full control of the company and injecting funds needed to steer it back in the right direction.
It all fits if you think about it.
As far as Nissan is concerned, only time will tell if its decision to pass on buying shares in Aston Martin bites them in the rear.
Why It Matters
It would be a shame if one of Britain’s most prestigious automakers continues to struggle in its current state. Naming Andy Palmer, who already has a relationship with Daimler, as CEO of the company could potentially lead to more serious talks with German company about a potential takeover.
Should that happen, and I do hope it does, Aston Martin can finally breathe easy, knowing it finally has the needed funds to operate at full capacity.
Although Daimler already owns a five-percent stake in Aston Martin, that might not be enough to keep the British automaker from floundering. Fortunately for Aston, recent reports suggest that there’s a 50/50 chance that Daimler will buy the remaining percentage of Aston Martin.
In addition to the small stake it currently has, Daimler also has a technical partnership with Aston Martin, which is expected to manifest in the latter’s next batch of models.
But why stop there, Daimler? You can buy Aston Martin entirely, save it from further trouble, and have yourself quite an imposing list of companies that already includes Mercedes-Benz, Smart, and Maybach.