Aston Martin and Daimler partners in technologies

The Aston Martin sports cars are presented during the Wuxi International Auto Expo on Sept 5 2013. [Photo/icpress.cn]

Aston Martin Lagonda Ltd and Daimler AG have signed an agreement for a significant technical partnership between Aston Martin, Daimler and Mercedes-AMG GmbH, a 100 percent subsidiary and high-performance brand of German automotive corporation Daimler AG.

Following the signing of a Letter of Intent in July the two companies have continued to work together, exploring opportunities for co-operation and these discussions have resulted in the signing of definitive agreements.

The agreement will allow Mercedes-AMG and Aston Martin to develop bespoke V8 engines supporting Aston Martin's launch of a next generation of models that will incorporate cutting edge technology and newly-developed engines, combining high performance and fuel efficiency.

Daimler will receive up to five percent non-voting shares in Aston Martin without cash consideration in several steps following the progress of the technical partnership. At the same time, the company will receive an observer status on the Aston Martin Holdings board. Daimler joins Aston Martin's existing shareholder body that includes Primewagon, Adeem Investment and Investindustrial.

The parties are working to conclude the terms of an additional cooperation for the supply of electric/electronic (E/E) components. Furthermore, the two groups will investigate additional areas of cooperation in the future.

Aston Martin will continue to manufacture all of its sports cars at its Gaydon headquarters in Warwickshire, England.

A spokesperson for the Aston Martin board said: "Our company is this year celebrating its centenary, and the partnership agreed today underpins prospects for Aston Martin's bright, vibrant and dynamic second century in the sports car business."

"This strategic collaboration for Aston Martin will, in our next generation of luxury sports cars, offer our customers increased performance and efficiency whilst retaining the unique character and style of an Aston Martin."

Tobias Moers, Chairman of the Management Board of Mercedes-AMG GmbH: "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. At our company's headquarters in Affalterbach we are proud to work with Aston Martin –this agreement is a real win-win situation for both sides."