Mercedes-Benz raises its stake to 20% in Aston Martin Lagonda

The British automobile company has been facing cash issues since forever and it just leveraged after a disastrous stock market flotation in 2018 at £19 each. With this, Mercedes-Benz came to the rescue as it increased its stakeholders from 5% to 20%.

The announcement, made after the London stock market closed, called the deal a "strategic technology agreement".

Wolf-Dieter Kurz, head of the product strategy at Mercedes-Benz Cars, said: "With this newly expanded partnership, we will be able to provide Aston Martin with access to new cutting-edge powertrain and software technologies and components, including next-generation hybrid and electric drive systems.

This deal will give Aston Martin access to Mercedes’ electric car technology. The luxury British car brand has always been known to be under waters for its profitability.
They have teamed up since 2013 by taking 5%. This helped both companies to work on engine development.

Known as James Bond’s favourite car, the brand has plans to grow sales to about 10,000 by 2025, up from 5,862 vehicles sold last year.

This Tuesday, the company spokesperson announced that it had a long-term strategy to increase its revenues to £2bn and attain earnings of about £500m in five years' time.

Mr Stroll, a Canadian billionaire and executive chairman of Aston Martin, said: "This is a transformational moment for Aston Martin. It is the result of six months of enormous effort to position the company for success to capture the huge and exciting opportunity ahead of us."

Separately on Tuesday, Aston Martin posted a £29m pre-tax loss for the third quarter, down from a £43m profit in the same period last year.