Mercedes-Benz Formalizes 20% Buyout of Aston Martin
Good for Both Parties?
Aston Martin is struggling, and now it seems like Aston will join forces with Mercedes-Benz. The two companies formalized a new agreement that will see Mercedes end up with 20 percent stake in Aston, according to EVO. In exchange, Aston will gain access to Mercedes powertrain technology, most notably it’s electrified ones.
This deal has been coming since Canadian businessman Lawrence Stroll took the helm of Aston Martin earlier this year. It’s a crucial lifeline for the company.
Over the course of the next three years, Aston Martin will have access to the new hardware and software in exchange for the stock.Mercedes-Benz will also get a person on the Aston Martin board by 2023. This person will be a non-executive chairman.
With this deal, Aston will be able to focus on expanding its model range and focusing on making the business work with new models like a front-engined GT car and the DBX-line.
Aston should have those cars out for sale by 2024 and 2025. This would allow the company to sell more vehicles overall. Forecasts put the automaker at 10,000 units with a £2billion revenue target. Once that time comes, Aston Martin will then be able to apply Mercedes-Benz’s electrification technology to its lineup and that will help Aston enter the new age of motoring, and hopefully, economic prosperity.
This is a win-win. While some hardcore Aston fans might not want the Germans fiddling with Aston’s models, it’s a simple matter of existing or not. Also, what’s wrong with German engineering? Aston has taken advantage of it before, and it makes so much sense for the future of the company.