Aston sells stake


It's no secret Aston Martin is badly in need of a cash injection and has been courting investors, with Indian firm Mahindra and Mahindra originally touted as one potential stakeholder.

£150m for just over a third of this
£150m for just over a third of this
But Aston Martin has instead sold the 37.5 per cent chunk of the firm to Italian consortium Investindustrial, the £150m this will bring in part of a half billion pound spending plan aimed at reviving the brand's fortunes. Investindustrial previously held a stake in Ducati, before selling this to Audi.

Investindustrial joins the Kuwaiti firm The Investment Dar as backers for Aston Martin, David Richards saying "With this partnership and the continued commitment of The Investment Dar, we look forward to working with our shareholders as we realise our vision and exciting future plans." For Investindustrial's part senior principal Andrea Bonomi said "We are looking ... to achieve a similar transformation and rejuvenation that we achieved with Ducati by expanding the model range and strengthening the dealership network throughout the world."

Aston Martin has been fighting claims that its range has stagnated of late, telling PistonHeads earlier in the year that its Vertical Horizontal construction technique is 'more than just a platform' and, despite appearances, there is more to the product range than generic spin-offs from an increasingly overstretched base package. The new Vanquish and revised DB9 may look familiar but there's real development under the skin, says Aston.

It'd be nice to see a bit more evidence of that in the finished products - perhaps with a bit more money in the coffers we'll get to see just that.

P.H. O'meter

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Comments (97) Join the discussion on the forum

  • myhandle 07 Dec 2012

    Good luck! I hope it works.

  • 365daytonafan 07 Dec 2012

    Be interesting to see what Aston does with the money. To put a little perspective Ferrari's accounts recorded a spend of €143m in 2011 and a a similar amount in 2010 (split between capitalised and non capitalised R&D) extend that over five years and that is more than the total £500m Aston are talking about assuming that is all for R&D.

    It is also resonable to assume that some of Ferrari's R & D cost has been absorbed into the Fiat group as a whole notably the engine development work done on the new range of engines for Maserati (which Ferrari will also use). Porsche (obviously a much larger company than Aston or Ferrari) recorded approximately €1bn of expenditure on R&D in 2011 (not surprisinging considering the 991 and Boxster launches in latr 2011 early 2012.

    The point is £500m sounds an impressive number but at best it levels the playing field with it's rivals in terms of investment in new product.

  • dibblecorse 07 Dec 2012

    Dear PH, Did you delete my thread on this ????

  • MrTappets 07 Dec 2012

    If Aston put all of this into one new model, say a new Vantage, it would end up competitive for a couple of years, but I think there needs to be consistent investment before the products catch up properly.

  • PascalBuyens 07 Dec 2012

    MrTappets said:
    If Aston put all of this into one new model, say a new Vantage, it would end up competitive for a couple of years, but I think there needs to be consistent investment before the products catch up properly.
    And then you'd probably have all the naysayers having a go at A-M again for having a car that looks too similar to an Aston...

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