RE: Mercedes to take 20 per cent stake in Aston Martin

RE: Mercedes to take 20 per cent stake in Aston Martin

Author
Discussion

Motormatt

484 posts

219 months

Tuesday 27th October 2020
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hyphen said:
Excellent news, and the "upto 20%" line in the article indicates the contract is reasonable.


Now as long as they don't follow the VAG brands and start using the Mercedes parts bin for everything Aston should hopefully have a lot less pressure on itself.
At least Mercedes produce cars well into Aston Martins price range, meaning if the shared parts are from the right bin, they won’t look out of place!

Looks like a good deal and hopefully secures AM a brighter future.

ManyMotors

649 posts

99 months

Tuesday 27th October 2020
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While this is encouraging, AM needs to take the technology it receives for equity given and turn that into product with demand. No cash is involved. Right now, it appears that AM's cash burn is putting the entity at risk. So is this enough in time? Let's hope so. Yet no one wants AM to make MB clones.

There is some cash involved with an equity and debt issuance that does not involve MB (Daimler). Those proceeds will refinance some existing debt though also provide some cash - hard to tell right now how much. Money is cheap right now but one part of the financing (on 259 million pounds) is 13.5% - and those have what looks like a contingent equity kicker. AM isn't giving up but their financings are getting expensive.

Edited by ManyMotors on Tuesday 27th October 21:21

WCZ

10,537 posts

195 months

Tuesday 27th October 2020
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can they please make the valk actually happen now?

rjfp1962

7,759 posts

74 months

Tuesday 27th October 2020
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AM(G) in drag....!

Fittster

20,120 posts

214 months

Tuesday 27th October 2020
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Big firms gobbling up small brands.

How long before Astons are based on Merc platforms, while it's customers desperately argue that they are nothing alike at all?



HocusPocus

914 posts

102 months

Tuesday 27th October 2020
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ManyMotors said:
Yet no one wants AM to make MB clones.
All low volume manufacturers create Frankensteins. My S1 Elise has a Citroën AX wiper arm, Peugeot light switches, Rover engine, and Vauxhall indicators. AM is no different.

Just hope that AM now gets the latest kit from MB rather than the v old gen tech seen in the Vantage and DBX.

Fittster

20,120 posts

214 months

Tuesday 27th October 2020
quotequote all
HocusPocus said:
ManyMotors said:
Yet no one wants AM to make MB clones.
All low volume manufacturers create Frankensteins. My S1 Elise has a Citroën AX wiper arm, Peugeot light switches, Rover engine, and Vauxhall indicators. AM is no different.

Just hope that AM now gets the latest kit from MB rather than the v old gen tech seen in the Vantage and DBX.
How many components can a manufacture take from another firm and still be considered an independent marque rather than simply a badge for a larger firm?


rjfp1962

7,759 posts

74 months

Tuesday 27th October 2020
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[quote=Fittster]
How many components can a manufacture take from another firm and still be considered an independent marque rather than simply a badge for a larger firm?

The one I don't get is why Toyota went to BMW to make the new Supra....!

GingerMunky

1,167 posts

258 months

Tuesday 27th October 2020
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Another bailout for Aston Martin, I hope this one works. Sorry for those that lost so much in the IPO.

LukeyC

50 posts

154 months

Tuesday 27th October 2020
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Fittster said:
HocusPocus said:
ManyMotors said:
Yet no one wants AM to make MB clones.
All low volume manufacturers create Frankensteins. My S1 Elise has a Citroën AX wiper arm, Peugeot light switches, Rover engine, and Vauxhall indicators. AM is no different.

Just hope that AM now gets the latest kit from MB rather than the v old gen tech seen in the Vantage and DBX.
How many components can a manufacture take from another firm and still be considered an independent marque rather than simply a badge for a larger firm?
Legally, it's 39 but many use a lot more. They've been at it for years.

GingerMunky

1,167 posts

258 months

Tuesday 27th October 2020
quotequote all
rjfp1962 said:
AM(G) in drag....!
I think your right, AM will really struggle to shake the 'expensive Mercedes' tag now ☹️

WantSagaris

236 posts

48 months

Tuesday 27th October 2020
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Hopefully they do something with MBs new inline 6, go back to the brands routes and create a lightweight roadster.

DickyC

49,801 posts

199 months

Tuesday 27th October 2020
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Motormatt said:
At least Mercedes produce cars well into Aston Martins price range, meaning if the shared parts are from the right bin, they won’t look out of place!

Looks like a good deal and hopefully secures AM a brighter future.
You've never forgiven them for using Maestro door handles.

Fittster

20,120 posts

214 months

Tuesday 27th October 2020
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LukeyC said:
Fittster said:
HocusPocus said:
ManyMotors said:
Yet no one wants AM to make MB clones.
All low volume manufacturers create Frankensteins. My S1 Elise has a Citroën AX wiper arm, Peugeot light switches, Rover engine, and Vauxhall indicators. AM is no different.

Just hope that AM now gets the latest kit from MB rather than the v old gen tech seen in the Vantage and DBX.
How many components can a manufacture take from another firm and still be considered an independent marque rather than simply a badge for a larger firm?
Legally, it's 39 but many use a lot more. They've been at it for years.
The DB7 was a Jag in drag but they moved away from that. Seems like a retrograde step but maybe they are so broke that's the only option.

Chubbyross

4,550 posts

86 months

Tuesday 27th October 2020
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rjfp1962 said:
AM(G) in drag....!
This. On the one hand it’s great that AM keep afloat once again, but how able will they be to keep producing cars that are uniquely Aston.

Oh, and please, please let someone from Mercedes start designing the Aston interiors. They’ve been a complete dog’s dinner for far too long. It’s the one thing that puts me off jumping ship from Porsche.

HocusPocus

914 posts

102 months

Tuesday 27th October 2020
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Fittster said:
HocusPocus said:
ManyMotors said:
Yet no one wants AM to make MB clones.
All low volume manufacturers create Frankensteins. My S1 Elise has a Citroën AX wiper arm, Peugeot light switches, Rover engine, and Vauxhall indicators. AM is no different.

Just hope that AM now gets the latest kit from MB rather than the v old gen tech seen in the Vantage and DBX.
How many components can a manufacture take from another firm and still be considered an independent marque rather than simply a badge for a larger firm?
Up to the point when customers start to suspect the leaders of the marque have lost their passion for the brand values. No one thinks the Elise is anything but a superb Lotus, or the McLaren F1 was a bodge for having a BMW engine.

I sat in the Vantage at its Goodwood reveal. Lots to like i the masculine design, noisy version of the MB turbo v8, but they installed the worst MBUX system ever. Impractical to operate whilst driving. On that basis alone, I decided then not to buy. Perhaps if these horror parts are sorted, I might give AM another look.

FlukePlay

954 posts

146 months

Tuesday 27th October 2020
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Rolls Royce, Bentley, Jaguar...seems like we have lost the family silver of motor manufacturers and soon it will be Aston.

DickyC

49,801 posts

199 months

Tuesday 27th October 2020
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On a tour of the Newport Pagnell factory in the 90s, our guide said there was a club of smaller car manufacturers who met periodically to discuss shared parts and parts they might use from mainstream manufacturers. He recited a list of members, "Aston Martin, Rolls Royce, Bentley, Bristol, Morgan, Lotus - not TVR..." It stuck in my mind.

rjfp1962

7,759 posts

74 months

Tuesday 27th October 2020
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FlukePlay said:
Rolls Royce, Bentley, Jaguar...seems like we have lost the family silver of motor manufacturers and soon it will be Aston.
Yes, but sadly all these brands would have gone. I don't like it, but this is where we are..!

kevinon

814 posts

61 months

Tuesday 27th October 2020
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I looked at their projections - £2 b revenue, 10,000 cars and EBITDA of £500million.

I'm no maths expert - does that mean selling 10,000 cars at an average sales price of £200,000 with a 25% margin? £50,000 margin per car.

Do people in the car trade think this forecast is anyway realistic?