Daimler plans larger stake in James Bond carmaker Aston Martin

Mercedes-Benz taking bigger stake in Aston Martin in exchange for sharing more tech

Daimler unit Mercedes-Benz is to lift its stake in Britain's Aston Martin to up to 20% by 2023, making it one of the struggling British carmaker's largest shareholders, Aston said on Tuesday.

By expanding a tie-up with Daimler that started in 2013, Aston Martin will both fix its balance sheet and better position for the shift away from internal-combustion engines.

Daimler CEO Ola Kallenius told reporters earlier this month the company has no intention to acquire Aston Martin but said their technology partnership will remain in place.

"This is a transformational moment for Aston Martin", said Aston Martin executive chairman Lawrence Stroll. The German marque has announced that it will be raising its stake in Aston Martin from 2.6% to 20%.

"Through this new expanded agreement, we secure access to world-class technologies to support our long-term product expansion plans, including electric and hybrid powertrains and this partnership underpins our confidence in the future".

Mercedes-Benz taking bigger stake in Aston Martin in exchange for sharing more tech
Mercedes seals deal to take up to 20% stake in Aston Martin

The new shares will not be issued to Mercedes instantaneously. "With this newly 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", said Wolf-Dieter Kurz, Head of Product Strategy at Mercedes-Benz.

Aston, which has started deliveries of its first sport utility vehicle, the DBX, said on Tuesday it swung into an adjusted core loss of 29 million pounds in the third quarter, versus a profit of 43 million pounds a year ago.

"Today, we take another major step forward as our long-term partnership with Mercedes-Benz AG moves to another level with them becoming one of the company's largest shareholders".

The companies didn't go into many specifics, but confirmed "Aston Martin requested access to certain engines and powertrains as well as powertrain software, E/E architecture and various other components". It also ensures that Aston Martin will be here to stay in the near future.



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