By on December 20, 2013
Aston Martin's current engines are assembled at a Ford facility near Cologne, Germany.

Aston Martin’s current engines are assembled at a Ford facility near Cologne, Germany.

In a non-cash deal, Daimler AG will supply Aston Martin Lagonda Ltd. with technology and engine development in exchange for as much as a 5% non-voting stake in the British luxury sports car maker. The AMG performance division at Mercedes-Benz will jointly develop engines with Aston Martin for AM’s next generation models. Daimler also will get a non-voting observer on Aston Martin’s board of directors. Aston Martin currently buys engines from Ford Motor Company, an artifact of the time when Ford owned AM. The Aston Martin V12 is based on the Ford Duratec V6 and Aston’s V8 engine is based on the Jaguar V8, funded by Ford when it owned that luxury marque as well.

“This agreement is a real win-win for both sides,” Tobias Moers, head of Mercedes-AMG, said in a statement cited by Bloomberg.

Aston Martin is currently the only the only global luxury car maker that’s not part of a larger manufacturing group with which it can share development and component costs so it’s looking to control development costs of the new models.

In addition AMG supplying engine development, the companies are looking into other possible areas of cooperation including Daimler providing Aston Martin with electronic components . Today’s agreement formalizes a tentative deal reached in July. Earlier in the year, Aston Martin announced that it was going to invest 500 million pounds ($819 million) on its operations over the next four years. The century old car maker sold 3,800 cars last year.

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14 Comments on “Daimler to Acquire Stake in Aston Martin in Exchange For AMG Engine Tech...”

  • avatar

    Heh, the story of Duratec V6 finding its second life as an Aston Martin V12 is pretty cool. Those were damn good engines by the standards of 90s, developed in collaboration with Porsche. DOHC design, and pretty much bullet proof reliability. However, besides the ill-fated Ford Contour SVT Ford never put them into a decent performance car.

    • 0 avatar

      I still think that Duratec V12 is one of the best sounding modern V12s. The new Lambo V12 just doesn’t have the musical quality to it that the Aston does.

      The Merc V12 in the Zonda certainly is glorious, but unfortunately, it’s stifled in the more modern turbocharged form.

      Pour one out.

  • avatar
    Ron B.

    what goes around come around…I think… One of my cars is a 1969 Mercedes 300SEL 6.3 .The same model that bought AMG into world attention when it came second at SPA. At the same time Ason martin was selling it’s DBS V8 which featured the same Bosch fuel injection as the mercedes 6.3 ,but the english never got the cold start set up right. one of our family friends had a new one,which if it didn’t light off immediately,would flood and flatten the battery.
    OK thats a bit tenuous but mercedes,AMG and Aston have a history….sort of.

    • 0 avatar

      my late uncle used to have the 600, is the same engine. He used to have a hard time to fire her up, then i suggested an electronic ignition module. There after it fired up soon as u turn the key.
      Some how the point system didnt have enuf juice to fire up the wetted plugs.

      Single plug bike engines were notorious to plug wet too.
      All I did was change another dry plug then it will go again.

  • avatar

    ” this agreement is a real win for both sides”

    Famous last words Moer, at least he didn’t say ” merger of equals”

    • 0 avatar

      I hope he’s right. There is a possibility that Aston can get a new lease on life, like Bentley under VAG, Rolls under BMW, and Jag/Rover under Tata.

      • 0 avatar

        Does Aston Martin NEED a new lease on life? They make awesome cars with good engines already!

        • 0 avatar

          While I totally agree with NoGo, and I think that a lot of the British marques mentioned above lost tons of their charm under foreign ownership, AM is kind of hitting a wall. They have had the same v12 since the late ’90s and at 565 horsepower in current form it does lag behind the competition which is pushing into the 6 and 700s. If they didn’t have some of the most achingly gorgeous cars on the market for the last decade, they probably would have problems being competitive.

          My only hope is that this merger doesn’t make the cars bland. Part of AM’s charm is that they are somewhat different and quirky (the kit car like interiors for example), they will lose this if they become another technically perfect, but perfectly predictable and boring German sports car. I get it’s a 5% stake, but hopefully it isn’t a slippery slope…

          • 0 avatar

            Yeah, M-B is great at building a million sterile silver cars, but Aston Martins shouldn’t be sterile at all.

        • 0 avatar

          It’s a strategic move, AM isn’t large enough to develop/mfg its own powertrains and can’t depend on it’s former owner forever to buy it’s powertrains. Ford could pull the plug on engine production at any time, then where will AM be?

        • 0 avatar

          Yes they do but governments all over the world constantly want engines to pollute less and consume less fuel. At the same time consumers want more and more power. Aston Martin will not be able to keep up unless they can hook up with a technological sugar daddy. And that is what they just did.

  • avatar

    i suppose we’re kind of laughing at the Cygnets now , soon enuf we will be drivings machines with engines not much bigger than KEI cars.

  • avatar

    I wonder if they had a sniff at JLR with that firm going to their own homegrown engine route. That may be the differentiator between making it and not in the coming years… the ability to create a new drivetrain that meets the current gov. specs.

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