Mercedes Offers Aston Martin New Tech In Exchange For Company Stake

A meeting of minds produces great news.

Your eyes are not deceiving you, it’s true that Mercedes-Benz is acquiring a bigger stake in Aston Martin. While you might think that’s great for the German Automaker, Aston Martin is getting its share from the deal; in exchange, the British automaker is getting access to the latest and greatest hybrid systems and electric powertrains that Mercedes-Benz has to offer.

While proceedings are firmly in the limelight right now, it’s important to note that this merger has been a slow build and not a sudden power grab. Keen readers will know that it all began in 2013 where Merc provided Aston with its AMG V8 engines.

It turns out the relationship goes even further than just technical components. Andy Palmer has since stepped down as CEO, a position which is now filled by former Mercedes-AMG CEO Tobias Moers – more recently, Formula 1 man Lawrence Stroll has acquired his fair share of the pie as well.  

To put some numbers on the table, Mercedes-Benz originally had 2.6% of Aston Martin’s holding equity. The new shares issued to the German automaker will take its holdings up to a 20% maximum. As it’s simply a technical alliance, there are no plans to further increase holdings in Aston Martin after all is said and done.

“We already have a successful technology partnership in place with Aston Martin that has benefited both companies,” said Wolf-Dieter Kurz, Head of Product Strategy at Mercedes-Benz cars. “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.”

A total value of $373 million (£286 million) will be required to achieve the maximum agreed shareholding of 20%. As such, the new shares will be issued in several tranches by 2023 which will be tied to the release of technology packages. Details remain sparse, but the future looks very exciting for Aston Martin on the road and the race track.



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