German automakerC has entered into agreement with Aston Martin Lagonda for a technical partnership between Daimler, its subsidiary Mercedes-AMG, and Aston Martin.
This agreement follows the signing of a letter of intent in July 2013 between the two companies.
The latest partnership will enable Mercedes-AMG and Aston Martin to develop bespoke V8 engines, supporting Aston Martin's launch of a next generation models.
Mercedes-AMG management board chairman Tobias Moers said: "By signing the Umbrella Agreement and the Engine Agreement both parties have agreed to this technical partnership: Mercedes-AMG will provide the British icon Aston Martin with engines for their forthcoming sports cars."
Following the progress of this technical partnership, Daimler will receive up to 5% non-voting shares in Aston Martin without cash consideration.
Both parties are working to conclude the terms of an additional cooperation for the supply of electric/electronic (e/e) components.
Furthermore, both groups will investigate additional areas of cooperation in the future. Aston Martin will continue to manufacture its sports cars at its Gaydon headquarters in Warwickshire, England.
Aston Martin board spokesperson said: "This strategic collaboration for Aston Martin will, in our next generation of luxury sports cars, offer our customers increased performance and state-of-the-art features whilst retaining the unique character and style of an Aston Martin."
Image: Daimler and Aston Martin have signed technical partnership agreements. Photo: Courtesy of Daimler AG.
