Daimler in Talks With Aston Martin for Supply Cooperation Agreement image

Daimler is in talks with Aston Martin on technical and supply cooperation agreements, link as the UK automaker tries to cut costs on developing models.

“While both sides know and respect each other very much, no decisions have been made,” said Silke Walters, a spokeswoman at Stuttgart, Germany-based Daimler.

She added that the talks also include Aston Martin owners Investindustrial and Investment Dar. An anonymous source said that Daimler is Investindustrial’s preferred partner when it comes to a supply agreement. Sports car maker Aston Martin is the only global luxury-auto brand which is not under the wing of a larger manufacturing group, which affects its efforts to reach the rivals’ lower costs for manufacturing cars.

In January, Aston Martin announced it plans to invest 500 million pounds ($777 million) in the following four years to compete with Fiat’s Ferrari and Maserati and VW’s Bentley. This year Aston Martin is celebrating its 100th anniversary and in January it announced its plans to find a partner to develop high-end engines to strengthen its sports cars.

In December Investindustrial acquired a 37.5% stake in Aston Martin for 190 million euro and the company plans to remain the automaker’s shareholder for the next decade. Investment Dar is the main owner from the group of investors which acquired the brand in 2007 from Ford for 503 million pounds.

Source: Bloomberg