Mercedes-Benz will increase its stake in British sports car company Aston Martin Lagonda by up to 20 per cent over the next three years.
In May 2020, former head of Mercedes-AMG, Tobias Moers, was announced as the new CEO at Aston Martin. A month prior, it was revealed Mercedes Formula One team boss Toto Wolff had personally invested in the British marque.
Aston Martin currently uses engines and gearboxes from AMG in some of its models, as well as switchgear and infotainment systems from Mercedes.
Head of Product Strategy at Mercedes-Benz, Wolf-Dieter Kurz: "We already have a successful technology partnership in place with Aston Martin that has benefited both companies".
Currently, Mercedes-Benz has a 2.6 per cent holding in Aston Martin, with a plan to purchase shares in stages over the next three years until the 20 per cent stake is reached.
The first agreed tranche will equal an 11.8 per cent share in Aston Martin, worth £140 million (AU$256.3M).
"With this new expanded partnership we will be able to provide Aston Martin with access to new cutting-edge technologies and components, including next generation hybrid and electric drive systems," Mr Kurz said.
"We look forward to continuing to work together with Aston Martin and we wish the company every success in its next stage of growth."