Aston Martin on Thursday said it had entered into a technical partnership with German carmaker Mercedes to help it to develop a new generation of models with V8 engines. As part of the deal, Mercedes owner Daimler will take a stake of up to 5% in the 100-year-old maker of the DB9 and Vanquish sports cars.
The investment will help Aston Martin compete better with Volkswagen's Bentley and rival UK luxury car maker Jaguar Land Rover, which was bought by India's Tata Motors in 2008 and has since achieved huge sales growth.
No value for the deal was provided but the two firms said a supply agreement between Mercedes-AMG, Daimler and Aston Martin was an essential element of the arrangement. “The proposed deal will see Aston Martin access significant Mercedes-AMG GmbH and Mercedes-Benz cars' resources, allowing the development of bespoke V8 powertrains and the use of certain components of electric and electronic architecture,” Ian Minards, Aston Martin's product development director, said.