German automotive manufacturer Daimler’s high performance brand Mercedes-AMG and Aston Martin have signed a letter of intent for a technical partnership for the development of British sports car maker's bespoke V8 engines.
Upon the expected signing of definitive agreements by the end of 2013, Daimler would also own a 5% non-voting stake in Aston Martin.
As part of the agreement, Mercedes-AMG will supply engines, while Mercedes-Benz Cars will offer electric/electronic (e/e) components for integration into Aston Martin's future sports cars.
Aston Martin product development director Ian Minards said the company has selected AMG particularly as the basis for this powertrain development process.
"Aston Martin sources cutting edge technology from key suppliers around the globe and the opportunity to include content from Mercedes-AMG GmbH in our next generation sports cars is, clearly, good news," Minards said.
The deal also involves collaboration between engineering teams from respective firms to optimise the execution of the technical partnership.
The latest agreement is anticipated to replace the Aston Martin's current engine supply deal with US automaker Ford, which makes V8 and V12 engines for the sports carmaker at its Cologne facility in Germany.
Earlier, Aston Martin also revealed plans of investing GBP500m in the following four years in its new product and technology programme.
