Aston Martin signs Letter of Intent for technical partnership with AMG

Thu, 25 Jul 2013

A little over two months ago came reports that Daimler and Aston Martin were in talks, again, about "supply and technical-cooperation agreements." The next step has been taken with Aston Martin announcing that it has signed a Letter of Intent that looks "towards a technical partnership" with Mercedes-AMG GmbH, and the two companies aiming to have definitive agreements done by year's end.

While it will get to use certain electric and electronic components from AMG, the true golden egg for the maker of the Vanquish will be the ability to develop a new line of "bespoke V8 powertrains" that will be fitted to "a new generation of models." In return for opening up the larder, Daimler will get a non-voting stake of up to five percent of Aston Martin.

Nothing else is being said about the tie-up for the moment, but there's a press release below with a few more details.

Aston Martin in technical partnership with Mercedes-AMG GmbH

Thursday 25 July, 2013, Gaydon: Aston Martin is today announcing moves towards a technical partnership with Mercedes-AMG GmbH, a 100% subsidiary and high performance brand of German multinational automotive corporation Daimler AG. A Letter of Intent to this end has been signed today and both parties are working towards signing definitive agreements before the end of the year. Such agreements are subject to applicable regulatory approvals.

The proposed deal will see Aston Martin access significant Mercedes-AMG GmbH and Mercedes-Benz Cars' resources, allowing the development of bespoke V8 powertrains and the use of certain components of electric/electronic (e/e) architecture.

Daimler AG will own a stake of up to five per cent non-voting shares in Aston Martin depending on the progress of the agreement. The company will join the existing shareholders that include Investment DAR, Adeem Investment and Investindustrial.

The technical partnership will support Aston Martin's launch of a new generation of models that will incorporate cutting edge technology and newly-developed bespoke V8 powertrains. An essential element of the planned partnership is a supply agreement between Mercedes-AMG, Daimler AG and Aston Martin.

Aston Martin, which is Britain's most exclusive sports car company, is celebrating its centenary this year. The company will continue to manufacture all of its sports cars at its Gaydon headquarters in Warwickshire, England.

Aston Martin Product Development Director Ian Minards said: "We have selected AMG specifically as the basis for this powertrain development process.

"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."

He added: "Working with Mercedes-AMG in this way while, of course, remaining independent and preserving the unique character and style of Aston Martin that has been the mainstay of the company throughout its 100-year history, points to a very bright future for the company as it starts its second century in business."

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."

The companies confirm that their respective engineering teams will work together to optimise the implementation of this technical partnership.

Both parties have agreed that no further details of the planned technical partnership will be revealed for the time being.

By Jonathon Ramsey