Earlier this year, Aston Martin Lagonda rejected a proposal from Geely and InvestIndustrial for an equity investment, saying “there is no basis for further discussion”. At the time, the 109-year-old sports car marque argued that the proposed deal was not an “attractive financing option or an opportunity to create value for existing shareholders”. However, there must have been further discussions as the situation took a 180 degree turn.
Geely has now issued a press release stating that it has reached an agreement with the Gaydon-based brand. China’s largest privately owned car technology group has signed a deal with Aston Martin Lagonda to buy a 7.6% stake in the British brand for an unspecified amount. Geely joins the Saudi Public Investment Fund, which has a 16.7% stake in AM, and Yew Tree – the consortium led by Lawrence Stroll – with an 18.3% stake. Additionally, Mercedes holds a 9.7% stake.
Geely controls a wide variety of automakers, including Volvo, Lotus, Polestar, Proton and the London Electric Vehicle Company (LEVC), but also new entrants such as Lynk & Co, Zeekr and Geometry. It should also be noted that Geely founder and chairman Li Shufu holds a 9.7% stake in Mercedes-Benz Group through Tenaciou3 Prospect Investment Limited.
The tie-up between Geely and Aston Martin comes just months after the British brand unveiled an updated logo and a new motto “Intensity. Driven” to go along with its “strategic repositioning”. Its first electric model is expected to arrive in 2025 and all products will be electrified by 2026.
Before that happens, the Valhalla planned for 2024 will be the company’s first plug-in hybrid model. Formerly known as the Vanquish, an “entry-level” supercar is planned for 2025 with an AMG V8 instead of the originally planned in-house V6.