Source: CNN | Editor: Khomarul Hidayat
KONTAN.CO.ID – LONDON. German carmaker Mercedes-Benz will take a stake in the struggling British automaker Aston Martin.
As quoted by CNN, Aston Martin has confirmed in a statement that Mercedes-Benz will increase its stake in Aston Martin over the next three years from 2.6% to as much as 20%.
In return for the increase in the share, Aston Martin will get access to Mercedes-Benz technology and components including next-generation hybrid and electric powertrains.
The Aston Martin, the favorite vehicle of the British secret service agent in the fictional James Bond film, was in dire straits even before the coronavirus pandemic hit the auto industry.
Also Read: Aston Martin suffered a loss of US $ 146 million in the first quarter due to corona
The company was battling weak demand for some of its models and a global auto slowdown, before billionaire Formula 1 owner Lawrence Stroll helped save Aston Martin in January 2020.
The Canadian billionaire heads a consortium that paid £ 182 million (US $ 236 million) for a 16.7% stake in Aston Martin.
Aston Martin then raised an additional £ 318 million (US $ 412 million) through the issuance of new shares.
In May 2020, the company replaced CEO Andy Palmer with Tobias Moers, who has been with Mercedes-AMG since 1994.
Investors remain unsure about the turnaround effort. The company’s shares have collapsed since Aston Martin was listed in October 2018.
Aston Martin stated Tuesday that it suffered an operating loss of £ 229 million (US $ 297 million) in the first nine months of this year.
Aston Martin shares have lost two-thirds of their value so far by 2020.
Moers said that the partnership with Mercedes-Benz will be very important in the future.
“German brand technology” will be fundamental to ensuring our future products remain competitive and will enable us to invest efficiently, “he said in a statement.
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