Aston Martin has announced a technical partnership with Mercedes-AMG GmbH, for the development of bespoke V8 powertrains and the use of certain electronic/electrical components as part of the company’s VH architecture.

Both companies signed a letter of intent today as they work towards a definitive agreement by the end of the year.

Aston-Martin-AMG-engineFuture Aston Martin’s will be AMG powered, starting with the V8 Vantage successor.

In the proposed agreement, Daimler AG will own a stake of up to five per cent (of non-voting shares) in Aston Martin without cash consideration, joining existing shareholders including Investment DAR, Adeem Investment and Investindustrial who completed a £150 million investment in the company during May this year.

The equity swap will be achieved in several steps following the progress of the technical partnership. Mercedes-AMG’s parent company Daimler AG will be granted an observer status on the Board of Management of Aston Martin, with the agreement being subject to any applicable regulatory approvals, if required.

An essential element of the planned partnership is a supply agreement between Mercedes-AMG, Daimler AG and Aston Martin which will focus on replacing the sportscar maker’s ageing V8 powerplants, with the company’s more highly-developed V12 engines being a longer-term consideration.

“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,” said Aston Martin Product Development Director Ian Minards.

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.”

Aston Martin will continue to manufacture all of its sports cars at its Gaydon headquarters in Warwickshire, with both company’s respective engineering teams working together within the remit of this new technical partnership.

Written By

Steve Davies

Steve is an investor, private equity advisor and former Partner at KPMG, PwC and Bain.   Most importantly he's a life-long car enthusiast, mountain biker and active sports enthusiast. He designs and builds technology platforms and is the architect behind Transmission.

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