Skip to main content
Sister Publication Links
  • Automotive News
  • Automobilwoche
  • Automotive News Canada
  • Automotive News China
Subscribe
  • Subscribe
  • Newsletters
  • Login
  • HOME
    • Latest news
    • Automakers
    • Suppliers
    • New Product
    • Environment/Emissions
    • Sales By Market
    • On The Move
    • Auto Shows
    • Munich Auto Show
    • Geneva Auto Show
    • Paris Auto Show
    • Beijing Auto Show
    • Shanghai Auto Show
  • Features
    • Long Read
    • Interview of the Month
    • Focus on Electrification
    • Focus on Technology
    • Segment Analysis
    • Cars & Concepts
    • Supplier Spotlight
    • Europe By The Numbers
  • Opinion
    • Blogs
    • Commentary
    • Guest columnists
  • Photos
    • Photo Galleries
    • Geneva Photo Gallery
    • Beijing Photo Gallery
    • Frankfurt Photo Gallery
    • Paris Photo Gallery
    • Shanghai Photo Gallery
  • Podcasts
  • Car Cutaways
  • EVENTS
    • ANE Congress
    • ANE Rising Stars
    • ANE Eurostars
    • Browse photos from the 2021 awards ceremony
  • More
    • Publishing Partners
    • Social Media
    • Contact Us
    • Media Kit
    • About Us
    • Capgemini: Securing the industry's future through a radical rethink
    • Capgemini: Succeeding with the automated driving journey through AI
    • HEXAGON: Plugging into data is the only way to make winning EVs
    • TUV Rheinland: Battery testing center for large battery packs and more
    • TUV Rheinland: Ideas, services and certifications for smart mobility
    • TUV Rheinland: Testing of automated and autonomous vehicles on test tracks
    • Toyota Europe
    • UFI Filters
    • Facebook
    • Instagram
    • LinkedIn
    • Twitter
MENU
Breadcrumb
  1. Home
  2. Automakers
October 27, 2020 01:13 PM

Aston Martin gets access to Mercedes EV tech in exchange for bigger stake

Staff and wire reports
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print

    Mercedes-Benz will increase its stake in Aston Martin to up to 20 percent from 2.6 percent as part of an expanded technology partnership between the automakers.

    Aston Martin will get access to advanced Mercedes technologies, including next-generation hybrid and electric powertrains, Mercedes said in a statement on Tuesday.

    Mercedes will receive new shares in Aston Martin as part of the partnership. Mercedes said it will not increase its holding in Aston Martin above 20 percent.

    Mercedes will become Aston Martin's biggest shareholder after Canadian billionaire Lawrence Stroll, who bailed out the automaker early this year.

    Stroll said Aston Martin will get Mercedes's latest and newest technology, which the struggling automaker did not have access to previously.

    Tobias Moers, the former head of Daimler's Mercedes-AMG performance division, replaced Andy Palmer as Aston Martin's CEO on Aug. 1.

    Moers said Aston Martin's initial partnership with Mercedes, formed in 2013, "was just to open the door."

    "Now we have access to the whole powertrain lineup of AMG, for example, from the low end to the high end," he said. "We can use their technology to transform it a little bit more bespoke for our cars in the future."

    By expanding its tie-up with Mercedes, Aston Martin will spare its already stretched balance sheet from spending on a costly shift away from internal combustion engines.

    Mercedes will not put any cash into its partner. Supplying electric-car technology to Aston Martin will boost economies of scale beyond Mercedes’s own product range.

    Third-quarter loss

    Aston Martin, which has started deliveries of its first SUV, the DBX, said on Tuesday it swung into an adjusted core loss of 29 million pounds ($38 million) in the third quarter, versus a profit of 43 million pounds last year.

    Revenue in the period nearly halved to 124 million pounds, it said.

    Aston Martin is targeting annual capital expenditure of 250 million pounds to 300 million pounds per year between 2021 and 2025.

    It envisages production volumes of 9,000 to 10,000 vehicles a year, including mid-engine cars using Formula One technology; revenues of about 2 billion pounds; and adjusted core profit of 500 million pounds by financial years 2024 or 2025.

    The automaker has struggled in the less than two years since going public, with high inventory and poor sales of its core sports cars undermining efforts to replicate Ferrari's stock market success.

    More cash

    Aston Martin said on Wednesday all the shares available in a 125-million-pound ($162.91 million) capital raise have been placed or subscribed, as the company  aims to turnaround its business.

    Permian Investment Partners, Zelon Holdings, Yew Tree Overseas and other institutional investors have subscribed for the capital raise, which represents about 13.7 percent of the company's shares, Aston Martin said.

    After the fundraising, Aston Martin will have more than 500 million pounds of cash, the company said in a stock-exchange filing. That amount is sufficient for its medium- and long-term requirements, Chief Financial Officer Ken Gregor said on a conference call.

    Bloomberg and Reuters contributed to this report

    RECOMMENDED FOR YOU
    Beijing offers subsidies to spur demand for new-energy cars
    Recommended for You
    Cars charging China
    Beijing offers subsidies to spur demand for new-energy cars
    VW Wolfburg exterior smoke stacks 2022
    Putin is pushing Germany's economy to the brink with gas supplies
    B-ON Vehicle Family
    Former BMW CFO plans rapid expansion in electric van sector including U.S. plant
    Sign up for free newsletters
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    Get Free Newsletters

    Sign up and get the best of Automotive News Europe delivered straight to your email inbox, free of charge. Choose your news – we will deliver.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    SUBSCRIBE TODAY

    Get 24/7 access to in-depth, authoritative coverage of the auto industry from a global team of reporters and editors covering the news that’s vital to your business.

    SUBSCRIBE NOW
    Connect with Us
    • Twitter
    • Facebook
    • LinkedIn
    • Instagram

    Founded in 1996, Automotive News Europe is the preferred information source for decision-makers and opinion leaders operating in Europe.

    Contact Us

    1155 Gratiot Avenue
    Detroit MI  48207-2997
    Tel: +1 877-812-1584

    Email Us

    ISSN 2643-6590 (print)
    ISSN 2643-6604 (online)

     

    Resources
    • About us
    • Contact Us
    • Advertise with us
    • Advertise with Us
    • Ad Choices Ad Choices
    • Sitemap
    Awards
    • Rising Stars
    • Eurostars
    • Leading Women
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Automotive News Europe
    Copyright © 1996-2022. Crain Communications, Inc. All Rights Reserved.
    • HOME
      • Latest news
      • Automakers
      • Suppliers
      • New Product
      • Environment/Emissions
      • Sales By Market
      • On The Move
      • Auto Shows
        • Munich Auto Show
        • Geneva Auto Show
        • Paris Auto Show
        • Beijing Auto Show
        • Shanghai Auto Show
    • Features
      • Long Read
      • Interview of the Month
      • Focus on Electrification
      • Focus on Technology
      • Segment Analysis
      • Cars & Concepts
      • Supplier Spotlight
      • Europe By The Numbers
    • Opinion
      • Blogs
      • Commentary
      • Guest columnists
    • Photos
      • Photo Galleries
      • Geneva Photo Gallery
      • Beijing Photo Gallery
      • Frankfurt Photo Gallery
      • Paris Photo Gallery
      • Shanghai Photo Gallery
    • Podcasts
    • Car Cutaways
    • EVENTS
      • ANE Congress
      • ANE Rising Stars
      • ANE Eurostars
        • Browse photos from the 2021 awards ceremony
    • More
      • Publishing Partners
        • Capgemini: Securing the industry's future through a radical rethink
        • Capgemini: Succeeding with the automated driving journey through AI
        • HEXAGON: Plugging into data is the only way to make winning EVs
        • TUV Rheinland: Battery testing center for large battery packs and more
        • TUV Rheinland: Ideas, services and certifications for smart mobility
        • TUV Rheinland: Testing of automated and autonomous vehicles on test tracks
        • Toyota Europe
        • UFI Filters
      • Social Media
        • Facebook
        • Instagram
        • LinkedIn
        • Twitter
      • Contact Us
      • Media Kit
      • About Us