Mercedes-Benz will increase its stake in Aston Martin Lagonda in exchange for greater sharing of components with the British automaker, the two companies announced Tuesday.
Under the agreement, Mercedes will own up to 20% of Aston Martin, compared to 2.6% now. Additional shares will be issued in several stages over the next three years, Mercedes parent Daimler said in a press release. Mercedes' stake will be valued at up to 373 million. Mercedes said it has no intentions of increasing its stake beyond 20%.
In exchange for the shares, Aston will get access to a wider array of Mercedes components. This will include internal-combustion, hybrid, and all-electric powertrains, as well as electrical architectures, and vehicle components and systems, to be used in all product launches to 2027, Aston said in a press release.
2019 Aston Martin DB11 AMR
After years of discussions, the automakers entered into their initial partnership in 2013, which saw Mercedes supply AMG 4.0-liter twin-turbocharged V-8 engines and electrical-architecture components to Aston. The deal initially called for Mercedes to take a 5% stake in Aston, but that was reduced to 2.6% after Aston's 2018 initial public offering (IPO) and subsequent funding rounds.
Aston Martin currently uses the AMG V-8 in the Vantage and DB11 sports cars, as well as the DBX SUV. Former AMG boss Tobias Moers was also announced as Aston's new CEO earlier this year, and Mercedes-AMG Formula One team principal Toto Wolff was part of a consortium of investors that bought Aston.
The Mercedes and F1 connections don't stop there. Canadian mogul Lawrence Stroll leads the investors backing both Aston and the Racing Point F1 team where his son Lance Stroll is a driver. The elder Stroll has decided to rebrand the team as Aston Martin for the 2021 season. Racing Point currently uses Mercedes powertrains, and will continue to do so under its new name.