In July of this year, Aston Martin and Mercedes-Benz tuner AMG signed a Letter of Intent to form a wide-ranging technical partnership aimed at providing the historic British sports car brand with access to some of AMG’s latest technology in return for some shares and other assets. Today, the parties have taken the partnership a step further by signing a final agreement.
The agreement will see Aston Martin and AMG develop bespoke V-8 engines for use in Aston Martin’s next generation of cars. In return, AMG parent company Daimler will receive up to five percent non-voting shares in Aston Martin. At the same time, Daimler will receive an observer status on the Aston Martin board.
In addition to these terms, Mercedes will supply Aston Martin with electric/electronic components and both companies will look to grow the partnership, exploring opportunities to cooperate in the future.
The first recipient of the new engines will be Aston Martin’s replacement for the V8 Vantage. Beyond the new V-8 engines, the parties are working to finalize a deal on the supply of electrical components. Furthermore, the parties will investigate additional areas of cooperation in the future. One possibility is the sharing of a Mercedes-Benz SUV platform for a new Aston Martin model tipped to be called the Lagonda.
While there’s been no mention of new V-12 engines, something AMG has much experience in, Aston Martin remains committed to offering sports cars with such engines. It is believed Aston Martin’s current arrangement of sourcing a bespoke 6.0-liter V-12 from Ford will continue for at least the next five years.
Tobias Moers, Chairman of the Management Board of Mercedes-AMG GmbH: “By signing the Umbrella Agreement and the Engine Agreement both parties have agreed to this technical partnership: Mercedes-AMG will provide the British icon Aston Martin with engines for their forthcoming sports cars. At our company ́s headquarters in Affalterbach we are proud to work with Aston Martin –this agreement is a real win-win situation for both sides.”
“Our company is this year celebrating its centenary, and the partnership agreed today underpins prospects for Aston Martin’s bright, vibrant and dynamic second century in the sports car business,” said an Aston Martin board member. “This strategic collaboration for Aston Martin will, in our next generation of luxury sports cars, offer our customers increased performance and efficiency whilst retaining the unique character and style of an Aston Martin.”
In 2012 Aston Martin reported a 9 per cent fall in profit, with around 3,800 car sale, roughly 10 per cent fewer than the previous year.
Aston began life as Bamford & Martin in 1913, operating out of a small motor repair shop in Kensington. It has had a turbulent century in which it has made many well-loved cars but has struggled to turn a consistent profit.
