German engines will soon be powering sports-cars built by Aston Martin, the maker whose models are best known for featuring in the James Bond series of action spy movies.
The deal will see Mercedes-Benz house tuner AMG supplying V8 power units and electronic components in exchange for a 5 per cent share of British maker Aston Martin.
Both sides had signed an agreement last summer on working together more closely. Analysts said the link-up could prove a life-saver for 100-year-old Aston Martin, which has been operating without a major partner for some time.
This contrasts with rival performance maker Porsche, which profits from synergies with its owner, Europe’s biggest carmaker Volkswagen.
Aston Martin turns out far fewer cars a year than Porsche. According to the latest data available, Aston Martin sold 2,300 cars from January to September 2012, 19 per cent fewer than during the same period in 2011. Until 2007 Aston Martin was owned by Ford.
Aston Martin’s largest investment partner is the Italian private equity firm Investindustrial, which last year bought a 37.5 per cent stake and recently sold off its venerable Ducati motorcyle brand to Audi.