The struggling British carmaker Aston Martin is set to get a big investment from German luxury car maker Mercedes-Benz against a large stake.
This was confirmed in a statement by the two car makers in which the companies have confirmed that over the next three years, its current stake of 2.6 per cent will steadily be increased to 20 per cent in Aston Martin by Mercedes-Benz trough periodic investments.
Access to the technologies available with Mercedes-Benz as well as components including next generation hybrid and electric powertrains will be available to Aston Martin in addition to the investments from the German company.
Even before the novel coronavirus pandemic slammed the auto industry, the condition as quite bad for Aston Martin, which is known worldwide as the maker of the favourite ride of fictional British secret service agent James Bond.
A global auto slowdown and weak demand for some of its models were major issues for the company. It was later rescued from the brink of collapse in January this year by Formula 1 billionaire Lawrence Stroll.
An investment of £182 million ($236 million) for 16.7 per cent stake of the company as made by a group that was led by the Canadian billionaire. An additional £318 million ($412 million) through the issue of new shares was also raised by Aston Martin.
In May, the company replaced CEO Andy Palmer with Tobias Moers, who had been with Mercedes-AMG since 1994.
The turnaround effort at the company has however failed to impress investors. Since being listed in October 2018, shares in the firm have collapsed. This was a stinging indictment of a carmaker that once sought a valuation on a par with Ferrari (RACE).
In the first nine months of the year, an operating loss of £229 million ($297 million) had been duffer by it, Aston Martin said on Tuesday. The stock has lost two-thirds of its value so far in 2020.
The investment and the partnership with Mercedes-Benz will be crucial for the future of the company, Moers said.
He said in a statement that the technology of the German brand "will be fundamental to ensure our future products remain competitive and will allow us to invest efficiently".
For the Daimler owned Mercedes-Benz, this deal with the British car maker is an opportunity for it to rub up its luxury credentials but at a modest price. It said the tech transfer is worth £286 million ($371 million).
(Source:www.cnn.com)
This was confirmed in a statement by the two car makers in which the companies have confirmed that over the next three years, its current stake of 2.6 per cent will steadily be increased to 20 per cent in Aston Martin by Mercedes-Benz trough periodic investments.
Access to the technologies available with Mercedes-Benz as well as components including next generation hybrid and electric powertrains will be available to Aston Martin in addition to the investments from the German company.
Even before the novel coronavirus pandemic slammed the auto industry, the condition as quite bad for Aston Martin, which is known worldwide as the maker of the favourite ride of fictional British secret service agent James Bond.
A global auto slowdown and weak demand for some of its models were major issues for the company. It was later rescued from the brink of collapse in January this year by Formula 1 billionaire Lawrence Stroll.
An investment of £182 million ($236 million) for 16.7 per cent stake of the company as made by a group that was led by the Canadian billionaire. An additional £318 million ($412 million) through the issue of new shares was also raised by Aston Martin.
In May, the company replaced CEO Andy Palmer with Tobias Moers, who had been with Mercedes-AMG since 1994.
The turnaround effort at the company has however failed to impress investors. Since being listed in October 2018, shares in the firm have collapsed. This was a stinging indictment of a carmaker that once sought a valuation on a par with Ferrari (RACE).
In the first nine months of the year, an operating loss of £229 million ($297 million) had been duffer by it, Aston Martin said on Tuesday. The stock has lost two-thirds of its value so far in 2020.
The investment and the partnership with Mercedes-Benz will be crucial for the future of the company, Moers said.
He said in a statement that the technology of the German brand "will be fundamental to ensure our future products remain competitive and will allow us to invest efficiently".
For the Daimler owned Mercedes-Benz, this deal with the British car maker is an opportunity for it to rub up its luxury credentials but at a modest price. It said the tech transfer is worth £286 million ($371 million).
(Source:www.cnn.com)
