Mercedes-Benz Could Completely Buy Out Aston Martin

Recent reports suggest that German auto giant Mercedes-Benz is all set to buyout Aston Martin. Mercedes has been under the radar to show keen interest in the British brand and also a holds a small stake in the company. Mercedes now wants to buy the entire brand, making it a part of the larger Daimler Group. Top officials at Mercedes suggested that Aston is a famous brand and could use more than just assistance with engines.

A potential tie-up between Mercedes and Aston Martin will be beneficial to both the companies for producing entirely new models. Mercedes-Benz currently holds a 5 percent non-voting stake in Aston Martin, wherein the company will receive AMG-developed V8 engines (without the AMG badge) for the next generation of cars. AMG will also supply electrical and electronic components to Aston Martin. The Vantage will be the first car to get the new AMG engine. The officials at Daimler had suggested earlier that the current partnership of both the companies is a win-win situation.

Aston Martin is a great brand with limited volumes and a complete buyout will deduct too much management attention. Daimler would like to work with Aston to meet the current partnerships needs. However, they never confirmed that a complete buyout was not on the cards in the future. A strong financial back up in the form of Mercedes will help Aston Martin to be financially viable. Aston is a small company compared to a giant like Daimler and needs major components. Mercedes could provide with the same. It will also help both the companies to share technologies, powertrain, platforms and co-develop new models in the future.

Source – Autocar