Aston Martin Lagonda and Mercedes-AMG have agreed to enter a technical partnership that will see Mercedes-AMG supply Aston Martin with engines and Mercedes-Benz Cars provide electric/electronic components for the British firm's future models.
As part of the agreement, Mercedes' parent company, Daimler AG, will receive up to 5% equity in Aston Martin, in staged steps following the progress of the technical partnership.
That partnership is said to support the development and supply of new, bespoke V-8 powertrains for Aston Martin's launch of a new generation of models incorporating cutting-edge technology.
According to Aston Martin product development director, Ian Minards: "We have selected AMG specifically as the basis for this powertrain development process."
Ford, which owned Aston Martin until 2007, has continued to supply the company with both V-8 and V-12 engines from its plant in Cologne, Germany. How long Ford engines will continue to be used or what plans there are for future V-12 engine supply were not disclosed.
For competitive reasons, neither party to the new agreement is providing any further details at the present time.
Other shareholders in Aston Martin include Investment DAR, Investindustrial and Adeem Investment. Investindustrial, an Italian private equity group that finalized a 35% investment in Aston Martin in May, was said at the time to have close ties to Mercedes-AMG, triggering speculation that some deal with the German firm would ensue.