Mercedes-Benz to increase stake in Aston Martin to 20% to help introduce new models: Here’s how

Mercedes-Benz aims to increase its stake in Aston Martin. This could mean that when the automotive world goes inevitably to full electric, Aston Martin could still be around.

By:October 28, 2020 3:17 PM

Mercedes-Benz has announced that it plans to increase its 5% stake in Aston Martin Lagonda to 20%. Aston Martin recently has been suffering financially. The brand is reported to incur operating losses of £229m in 2020 with the pandemic taking some of the blame. Mercedes-Benz aims to help revive the brand by reducing development costs and offering its proven technologies. As a part of the acquisition, Mercedes-Benz will grant access to its plug-in hybrid and fully electric platforms and technologies. This would help Aston Martin reduce costs and risks in developing their own electrified powertrains and systems.

Aston Martin was recently acquired by Lawrence Stroll, owner of the Racing Point F1 Team. From the 2021 season, the same team will be rebranded as Aston Martin racing marking its return to the sport as well. Aston Martin had also developed a new twin-turbo V6 engine. It is said to power its next generation of models which would be mid-engined. The Aston Martin DBX, the first-ever SUV in the marquee’s history has just gone on sale. Aston Martin also ousted Andy Palmer, replacing him with former AMG boss – Tobias Moers, to spearhead the company and brand.

It is said that Aston Martin will introduce a new smaller SUV to sit below the DBX. Additionally, its front engined sports cars like the Vantage, DB11 and the DBS Superleggera will all be updated soon. Aston Martin is currently working on a range of mid-engined sports cars in addition to bringing its first mid-engined hypercar – Valkyrie to production in the near future. By 2025/26, Aston Martin hopes to be able to bag in a net income of £500m with interest, taxes, depreciation, and amortisation.

Aston Martin in the era of electric

What this acquisition mean essentially are two very vital things for the British marquee. First, as the future is inevitably going towards electric, powertrains from Mercedes-Benz are likely to be shared, among other things, with Aston Martin. This means that when things go fully electrified, Aston martin as a brand will still be around. But for those afraid of dilution of the essence of Aston Martins and how they are some of the most desirable sportscars to own and drive, remember Tobias Moers is in charge. He helped create the behemoth AMG is today. So hopefully, the essence of Aston Martin will continue to be present in the future as well.

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