LONDON, UK: Aston Martin Lagonda Global Holdings and Mercedes-Benz AG have announced that they have agreed to amend their Strategic Co-operation Agreement (“SCA”), which was signed in October 2020.
The SCA gave Aston Martin access to a range of Mercedes’ technology, in exchange for issuing shares to the German carmaker. The amendment will replace the agreement to issue a second tranche of shares with a cash payment for the potential future supply of Mercedes’ technology to Aston Martin.
Mercedes will continue to provide Aston Martin with access to its powertrain and electric/electronic architectures for current and future generation Aston Martin vehicles, including internal combustion engine, hybrid and electric vehicles.
The Relationship Agreement between the two companies will remain in place, which means that Mercedes will keep its representation on the Aston Martin Board of Directors and its shareholding of about 9.4% in the British luxury carmaker.
The amendment also clears the way for Aston Martin to form a strategic supply agreement with Lucid Group, Inc. (“Lucid”), a US-based electric vehicle company, to provide Aston Martin with access to Lucid’s industry-leading technology for Aston Martin’s battery electric vehicles. Mercedes has waived any rights or obligations under the SCA that may have otherwise arisen in connection with the proposed partnership with Lucid.
Lawrence Stroll, Executive Chairman of Aston Martin, said: “I am delighted to continue our long-term partnership with Mercedes-Benz and appreciate their ongoing support of Aston Martin. This amendment provides clarity and will see both companies continue our long-standing relationship, providing us with access to Mercedes’ world-class technologies as we bring our new range of breathtaking products to market over the coming years.”
Franz Reiner, Non-Executive Director and Mercedes-Benz AG Representative, said: “As a long-term shareholder, Mercedes-Benz supports Aston Martin’s future development as an independent luxury carmaker. Today’s revised cooperation agreement is the best of both worlds: It ensures that Aston Martin continues to have access to a wide range of Mercedes-Benz technologies, while at the same time giving the iconic British carmaker the opportunity to explore new opportunities which fit its specific needs.”
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