It becomes increasingly difficult to understand just who owns what in the motoring industry these days. On this page alone, we have China owning MG. So who owns another British manufacturer in Aston Martin?
Private equity fund Investindustrial (Italy) has just signed a memorandum of understanding with current Aston Martin owner Investment Dar that will see it pay $185 million for a 37.5 percent stake in the British car maker best known for its association with the James Bond movies. Investindustrial is the former owner of Italian motorcycle maker Ducati.
Multi-national Aston Martin.
Investindustrial also confirmed plans to invest up to $615 million in new product development at Aston Martin over the next five years.
Investindustrial edged out a highly fancied rival bid from Indian commercial vehicle maker Mahindra and Mahindra (after all, Tata has Jaguar), which is thought to have offered a significantly greater injection of cash for Aston Martin, but Investindustrial is thought to have brought a technical collaboration with Mercedes-Benz’s AMG to the bargaining table.
AMG has said there is a deal on the table to provide engines, gearboxes and electric components to Aston Martin.
Among the components Aston Martin is rumored to be seeking from AMG is a new V12 engine to replace the aging Ford-developed unit used in today’s Vanquish. “There is significant scope. It would be more than just drivelines. If you look at Aston Martin products today, it is clear that they need not only new drivelines with increased performance and improved emission capability but also electronic architectures as well,” an AMG source revealed.
AMG produces twin-turbocharged 6.0 liter V12 and twin-turbocharged 5.5 liter V8 gasoline engines at its factory in Affalterbach near Stuttgart, Germany. It has also engineered a unique version of Mercedes-Benz’s seven-speed 7G-Tronic automatic gearbox for its own line-up of performance models.
Aston Martin chairman David Richards said, “I am delighted that Investindustrial has decided to become a major investor in Aston Martin. With the support of Investment Dar, we have made substantial progress over the past five years in laying the foundations for success as one of the world’s leading luxury sports car manufacturers. Investindustrial’s new investment reflects and sustains the unique position of Aston Martin within the industry. With this partnership and the continued commitment of Investment Dar, we look forward to working with our shareholders as we realize our vision and exciting future plans.”
Andrea Bonomi, senior principal at Investindustrial said, “We are looking forward to working with the management and Investment Dar to achieve a similar transformation and rejuvenation that we achieved with Ducati, by expanding the model range and strengthening the dealership network, throughout the world.”
