Mercedes-Benz increases quota: Daimler wants to save Aston Martin


Mercedes-Benz is expanding its stake in the British carmaker Aston Martin Lagonda and wants to collaborate more closely with it. The British, known among other things for the cars from the James Bond films, have long suffered from a truce.

Mercedes-Benz, a Daimler auto subsidiary, is increasingly involved in ailing British carmaker Aston Martin Lagonda. Mercedes will give the British access to new technologies, the Stuttgart and Gaydon companies announced. In return, Daimler is increasing its share from the current 2.6 percent to a maximum of 20 percent.

The Stuttgart-based company will receive new shares over the next three years that will be issued by Aston Martin in stages up to a total value of 286 million British pounds (approximately 315 million euros). Aston Martin will receive next-generation hybrid and electric powertrains as well as other vehicle components and systems. Aston Martin was rescued in the spring by a consortium led by Canadian billionaire and Formula 1 tycoon Lawrence Stroll with a cash injection. Then Stroll brought the former head of the Mercedes-Tuning AMG subsidiary, Tobias Moers, to the British as CEO.

The British, known among other things for cars from the James Bond films, have long been suffering from a respite and have high hopes for their first SUV called the DBX. The company had invested a lot of money in starting the car and production is now in full swing, he said. Aston Martin went public in October 2018 for 1900 pence per share at the time. Shortly thereafter, the price fell: in the first half of the year, the issuance of new shares also had a negative impact. More recently, the stock costs just over 50 pence.

Big losses

As money is still limited, the company has exploited the capital market again. For £ 125 million, new shares are issued at 50p each, and Aston Martin is procuring more than £ 1.1 billion of debt, servicing partially maturing debts. The move brought freely available funds to over £ 500 million, he said. Aston Martin also unveiled its third quarter figures and a plan for the next few years.

Between July and the end of September, sales of £ 124 million were around half of the previous year’s. Loss before interest, taxes, depreciation and exceptional items was £ 29 million, compared with an operating profit of £ 43 million a year ago. By 2025, sales are now expected to grow strongly to £ 2 billion and operating profit to around £ 500 million.


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