Mercedes-Benz AG and Aston Martin Lagonda Global Holdings plc (AML) have announced a new strategic technology agreement and an enhanced partnership.
The new agreement will see Mercedes-Benz AG grant the firm access to a range of advanced technologies, including its next generation hybrid and electric powertrains, as well as other vehicle components and systems.
Access to these technologies will be granted in exchange for new shares in AML, issued in several stages over the next three years, up to a total value of $507 million.
Mercedes-Benz AG’s current shareholding stands at 2.6% of Aston Martin’s common equity.
The new shares will take Mercedes-Benz’s holding up to a maximum of no more than 20%. Mercedes-Benz AG has no intention to increase its holding in AML beyond this level.
Meanwhile, AML has announced that a new business plan has been developed as a result of the new partnership, with the firm targeting a revenue of $3.55 billion and $886 million of adjusted EBITDA by 2024/25.
In order to achieve these figures, Aston Martin is targeting a sales volume of 10,000 units a year, reflecting the technology agreement and the delivery of new, compelling vehicles to achieve these growth ambitions.
It also plans a refresh of its front-engine sports car range, an expansion of its SUV offerings and the launch of a mid-engine range. There is also a programme of specials over the period intended to support the core business.