Mercedes to Buy Aston Martin? Most Likely
Daimler-Benz has held a four percent stake in the British carmaker for some time. Although there wasn’t an official announcement, the two companies verified that Daimler increased its share of Aston Martin to five percent recently. Although one percent doesn’t sound like much, it was a much needed infusion of cash for Aston.
Companies Agree to Engine Supply Cooperation
There’s been a cooperation agreement between the two companies in the engine supply arena. Aston Martin is in a push to end the era of Ford Motor Company engines being under its cars’ hoods. The agreement between the two companies may end up leading to AMG engines appearing in Aston Martin cars, probably at least V8s, and maybe also V12s in coming years.
Rumors of a Full Buyout
Some auto journalists are speculating that Daimler is considering an outright purchase of Aston Martin, the only car maker in the world not under the umbrella of a larger company. However, there are those who argue that the Chrysler venture was a fiasco that shouldn’t be repeated. The company has also recently pulled back from its partnership with McLaren Automotive.
Aston Martin is currently owned by a group of firms in the private equity and investment banking arena — not the car making industry. These types of owners/investors are usually in it for the short run, and none of the companies backing Aston have been involved with them for more than eight years. Thoughts are that one or more of them may be ready to liquidate their holdings and move on.
Daimler’s Partial Ownership is Good News for Aston Martin
One of the best things that can come of this relationship between Stuttgart and Britain is the engine supply, or more specifically, better engines for Aston vehicles. Although known as a high-end automobile manufacturer, Aston Martin has actually had several shortfalls in the electrical and electronics department. This new arrangement with Daimler means better wiring looms in the future, and maybe even a replacement for the clunky and tired Volvo-based navigation units the cars currently have.