British firm to gain access to Mercedes technologies including electric and hybrid powertrains under expanded agreement
British firm to gain access to Mercedes technologies including electric and hybrid powertrains under expanded agreement
Mercedes-Benz will take a major stake in Aston Martin as part of a “truly game changing” strategic technology agreement that will underpin a plan for the British firm to double its sales by 2025.
The agreement expands the existing relationship between the two firms, and will include Aston Martin gaining access to Mercedes technology including electric and hybrid powertrains that will form a key part of its expansion plans.
With the new agreement Aston Martin has targeted selling around 10,000 vehicles a year by 2025, with the aim for revenues of around AUD$3.66 billion and EBITDA profits of around AUD$915 million. For comparison, Aston sold 5862 vehicles in 2019.
Under the agreement, Mercedes-Benz will gradually increase its stake in Aston Martin up to a maximum of 20%, providing a welcome boost in investment for the Aston and making the German giant one of Aston’s largest shareholders. The technology will be supplied ‘on commercial terms.’
Lawrence Stroll, whose investment consortium completed its takeover of Aston Martin earlier this year, called the agreement “a transformational moment”. He added: “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.
“This is truly game changing. We now have the right team, partner, plan and funding in place to transform the Company to be one of the greatest luxury car brands in the world.”
New Aston Martin CEO Tobias Moers, who joined the firm from his previous role as head of the Mercedes-AMG performance division, said: “We have updated our plans for the business, incorporating the benefits of our enhanced partnership we are announcing today. We are targeting delivery of significant growth and margin expansion in the medium-term, not just through product expansion but also by incorporating a strategy to deliver a level of operational excellence and efficiency throughout every aspect of the organisation.
“The capabilities of Mercedes-Benz AG technology will be fundamental to ensure our future products remain competitive and will allow us to invest efficiently in the areas that truly differentiate our products.”
Mercedes-Benz product strategy chief Wolf-Dieter Kurz said: “With this new expanded partnership, we will be able to provide Aston Martin with access to new cutting-edge powertrain and software technologies and components, including next generation hybrid and electric drive systems. Access to this technology and these components will be provided in exchange for new shares in Aston Martin.”
James Attwood