Aston Martin seeking technical partnership with AMG

Aston Martin has announced it signed a letter of intent with Mercedes-AMG GmbH to enter into a technical partnership with the German firm.

The deal is expected to see AMG secure a 5% stake in Aston Martin in exchange for access and development of bespoke V8 engines, along with electric/electronic (e/e) components from Mercedes-Benz Cars.

A formal agreement is yet to be signed but both companies are working towards finalising the deal, which may be subject to regulatory approvals, before the end of the year.

“We have selected AMG specifically as the basis for this powertrain development process,” said Ian Minards, Aston Martin Product Development Director.

“Aston Martin sources cutting edge technology from key suppliers around the globe and the opportunity to include content from Mercedes-AMG GmbH in our next generation sports cars is, clearly, good news.”

Ola Källenius, Head of Mercedes-AMG GmbH added, “We are proud to work with Aston Martin and provide them with powertrain and e/e components for their forthcoming sports cars. This is proof of AMG’s technological and performance expertise and a real win-win situation for both sides.”

No further detail will be provided from either manufacturer until the partnership has been signed off.

Aston Martin in technical partnership with Mercedes-AMG GmbH

Thursday 25 July, 2013, Gaydon: Aston Martin is today announcing moves towards a technical partnership with Mercedes-AMG GmbH, a 100% subsidiary and high-performance brand of German multinational automotive corporation Daimler AG. A Letter of Intent to this end has been signed today and both parties are working towards signing definitive agreements before the end of the year. Such agreements are subject to applicable regulatory approvals.

The proposed deal will see Aston Martin access significantMercedes-AMG GmbH and Mercedes-Benz Cars’ resources, allowing the development of bespoke V8 powertrains and the use of certain components of electric/electronic (e/e) architecture.

Daimler AG will own a stake of up to five per cent non-voting shares in Aston Martin depending on the progress of the agreement. The company will join the existing shareholders that include Investment DAR, Adeem Investment and Investindustrial. The technical partnership will support Aston Martin’s launch of a new generation of models that will incorporate cutting edge technology and newly-developed bespoke V8 powertrains.

An essential element of the planned partnership is a supply agreement between Mercedes-AMG, Daimler AG and Aston Martin.

Aston Martin, which is Britain’s most exclusive sports car company, is celebrating its centenary this year. The company will continue to manufacture all of its sports cars at its Gaydon headquarters in Warwickshire, England.

Aston Martin Product Development Director Ian Minards said: “We have selected AMG specifically as the basis for this powertrain development process.

“Aston Martin sources cutting edge technology from key suppliers around the globe and the opportunity to include content from Mercedes-AMG GmbH in our next generation sports cars is, clearly, good news.”

He added: “Working with Mercedes-AMG in this way while, of course, remaining independent and preserving the unique character and style of Aston Martin that has been the mainstay of the company throughout its 100-year history, points to a very bright future for the company as it starts its second century in business.”

Ola Källenius, Head of Mercedes-AMG GmbH said: “We are proud to work with Aston Martin and provide them with powertrain and e/e components for their forthcoming sports cars. This is proof of AMG’s technological and performance expertise and a real win-win situation for both sides.”

The companies confirm that their respective engineering teams will work together to optimise the implementation of this technical partnership.

Both parties have agreed that no further details of the planned technical partnership will be revealed for the time being.

Mercedes-AMG GmbH and Aston Martin Lagonda Ltd. to enter technical partnership

Stuttgart/London, Jul 25, 2013

• Supply agreements for engines and Electric/Electronic (E/E) components planned
  
• Daimler to receive up to 5% equity in Aston Martin
  
• Ola Källenius, Head of Mercedes-AMG GmbH: “We are proud to work with Aston Martin and provide them with powertrain and e/e components for their forthcoming sports cars.”
  
• Aston Martin Product Development Director Ian Minards: “We have selected AMG specifically as the basis for this powertrain development process.”

Mercedes-AMG GmbH, a 100% subsidiary and the high performance brand of Daimler AG, and Aston Martin Lagonda Ltd. intend to enter a technical partnership. A corresponding Letter of Intent has been signed today. Essential elements of the planned partnership are supply agreements between Mercedes-AMG, Mercedes-Benz Cars and Aston Martin. Mercedes-AMG will supply Aston Martin with engines, while Mercedes-Benz Cars will provide the British luxury sports car manufacturer with e/e (electric/electronic) components for Aston Martin’s future models.

In addition to those agreements, Daimler will receive up to 5% equity in Aston Martin without cash consideration in several steps following the progress of the technical partnership. At the same time, the company will receive an observer status in the Board of Management of Aston Martin. Based on the Letter of Intent, both parties have the intention to work towards signing of definitive agreements during the second half of the year. The overall transaction is subject to the conclusion on definitive agreement and applicable regulatory approvals, if required.

Ola Källenius, Head of Mercedes-AMG GmbH: “We are proud to work with Aston Martin and provide them with powertrain and e/e components for their forthcoming sports cars. This is proof of AMG’s technological and performance expertise and a real win-win situation for both sides.”

Aston Martin Product Development Director Ian Minards said: “We have selected AMG specifically as the basis for this powertrain development process. Aston Martin sources cutting edge technology from key suppliers around the globe and the opportunity to include content from Mercedes-AMG GmbH in our next generation sports cars is, clearly, good news.”

Not the least due to competitive reasons, both parties agreed on non-disclosure of further details of the planned partnership for the time being.