Business

Aston Martin, Mercedes up linkage through added ownership stake, strategic cooperation

The Aston Martin DBS Superleggera 007 Edition is just one of the new models the company rolled out this year.

Photo courtesy of Aston Martin

An expanded partnership between Aston Martin Lagonda and Mercedes-Benz will limit the beleaguered British automaker's risk and provide for a more tech-heavy future.

Tobias Moers, Chief Executive Officer of Aston Martin Lagonda, spent more than 25 years in senior roles at Diamler AG, the parent company of Mercedes-Benz AG, prior to assuming the role in August 2020. "Today's expansion of our partnership with Mercedes-Benz AG is a critical step towards achieving our goals for Aston Martin. The capabilities of Mercedes-Benz AG technology will be fundamental to ensure our future products remain competitive and will allow us to invest efficiently in the areas that truly differentiate our products," he said in a statement regarding the news.

Mercedes already has a strategic partnership with Aston Martin. The new agreement allows the German automaker to become a more heavily invested long-term partner, supplier, and shareholder through a number of initiatives. These initiatives will effect everything from product development and technology offerings to fiscal stability.

Mercedes has given Aston Martin new financing. It is comprised of:

  • £125 million in new ordinary shares
  • £259 million equivalent in new second lien notes which mature in 2026 with detachable warrants incorporated representing 5.0% of the fully diluted issued share capital of Aston Martin following the proposed Mercedes-Benz AG share issuances
  • £840 million equivalent of first lien notes, which mature in 2025 and a refinanced revolving credit facility of £87 million maturing in 2025
This financing allows Aston Martin to repay a loan it took out as part of the U.K. Coronavirus Large Business Interruption Loan Scheme. It also allows for working capital and capital expenditures to pay commissions and fees. Mercedes-Benz will then own up to 20 percent of Aston Martin.
In addition to financial stability, the partnership will give Aston Martin access to powertrain architecture for conventional, hybrid, and electric vehicles currently on the market and future-oriented electric/electronic architecture. This will enable profit launches through 2027 and lower the cost and risk occurred when Aston Martin was faced with developing those technologies on its own.

Aston Martin is targeting 10,000 units of sale each year with $2 billion in revenue by 2024-2025, according to the announcement.

J.P. Morgan and Barclays were instrumental in helping put Goethe the agreement.

Trending News

 
 

The EQB lands this summer with a not-so-bad starting price.

Mercedes-Benz

Mercedes-Benz is pressing ahead with its electrification goals. Following the release of the EQS flagship electric sedan last year, the automaker is readying the EQB, an electric SUV with up to seven seats. Today, Mercedes announced pricing for the vehicle, and it's surprisingly reasonable. Two trim levels will be offered for the EQB in the United States: Exclusive and Pinnacle, and wecould see an AMG variant at some point down the road.

The EQB comes in two variants, including the EQB 300 and EQB 350, both of which come with all-wheel drive. The EQB 300 offers 225 horsepower and the 350 delivers 288 ponies. Those aren't super-serious numbers and they don't have to be. The EQB competes with vehicles like the Volkswagen ID.4, so mind-blowing performance isn't exactly the goal. Mercedes hasn't given range estimates yet, but they should fall in line with the competition.

2023 Mercedes-Benz EQBThe EQB will come in two powertrain variants, each with two trims.Mercedes-Benz

The SUV comes standard with a 10.25-inch configurable digital gauge cluster and a 10.25-inch touchscreen. Mercedes includes a good list of standard safety features, including lane keep assist, blind spot monitoring, and active brake assist. Additionally, the EQB's navigation system routes the vehicle for the best efficiency and can help locate charging stations.

The 2023 Mercedes-Benz EQB 300 starts at $56,800, including a $1,050 destination charge. A range-topping Pinnacle trim is available for $59,350. The EQB 350 starts at $60,350. Mercedes says the SUV will go on sale in summer 2022.

Trending News

 
 

New performance sedan

2023 Mercedes-AMG C 43 on the way with F1 tech

The new C 43 gets engine tech straight from Formula 1.

Mercedes-AMG

It's about time we started considering Mercedes-AMG's 43-level cars in some of the same conversations that include the 53- and 63-level monsters. Today, Mercedes-AMG announced the 2023 C 43 Sedan. But even though it's the "entry-level" C-Class performance car, AMG gave it some serious upgrades, including standard rear-wheel steering, a mild-hybrid system, and plenty of power.

2023 Mercedes-AMG C 43 SedanRear-wheel steering is standard, as is adaptive suspension. Mercedes-AMG

The new turbocharged four-cylinder engine makes 402 horsepower and 369 pound-feet of torque - up from last year's 385 ponies. It's paired with a 48-volt mild-hybrid system, a nine-speed automatic transmission, and rear-biased all-wheel drive. Mercedes says the powertrain is strong enough to propel the C43 to 60 mph from a standstill in just 4.6 seconds.

The four-cylinder is the first production engine with an electric exhaust-gas turbocharger. The tech came directly from the Mercedes-AMG Petronas Formula 1 Team, who won the 2021 Constructor's Championship. Where traditional turbochargers have to build boost over a short period of time, an electric motor spins the turbo to start before allowing the exhaust gases to take over. The system is driven by the car's 48-volt mild-hybrid system and should reduce turbo lag and improve responsiveness.

2023 Mercedes-AMG C 43 SedanThe car's electric turbocharger is a first in a production car. Mercedes-AMG

Five driving modes are available, including Slippery, Comfort, Sport, Sport +, and Individual. The drive modes alter throttle and steering response, transmission shift points, exhaust sound, and settings for the adaptive dampers. Shockingly, the car comes standard with rear-wheel steering with an angle of up to 2.5 degrees. The system works at speeds of up to 37 mph, and can drastically reduce the C 43's turning radius while improving turn-in and handling.

Trending News