To gain access to world-class technologies to support our long-term product expansion plans, including electric and hybrid powertrains.
Mercedes' equity stake in Aston Martin will be increased in several stages up to a maximum of no more than 20.0%. This way, Mercedes-Benz will become one of the company’s largest shareholders.
We guess that as a small, luxury manufacturer, Aston Martin is not able to develop expensive new technologies on its own anymore and entering into a satellite orbit of some bigger group was inevitable.
According to the press release, Aston Martin's long-term plan includes product expansion plans, including electric and hybrid powertrains and this partnership underpins our confidence in the future.
"Expanded and enhanced strategic cooperation agreement (the “Strategic Cooperation Agreement”) with long-term partner, supplier and shareholder Mercedes-Benz AG (page 6)
- Provides access to a range of world-class technologies, including powertrain architecture (for conventional, hybrid, and electric vehicles) and future oriented electric/electronic architecture, for all product launches through to 2027.
- Removes the costs and risks associated with developing these technologies, enabling Aston Martin to focus its investment in other areas and expand its product portfolio.
- The Company proposes to issue new Aston Martin ordinary shares to Mercedes-Benz AG, to increase its holding up to a maximum of 20.0% in several stages; Mercedes-Benz AG will receive the right to nominate one non-executive director for appointment to the Company’s Board after its first shareholding increase."