Geely becomes Aston Martin’s third largest stakeholder
The Chinese Geely Group will more than double its stake in the British sports car brand Aston Martin. The partnership could push the luxury brand towards more electric mobility.
Geely first invested in Aston Martin in September of last year. This time, the Chinese company will invest 234 million pounds to increase its stake in Aston Martin from 7.6 per cent to 17 per cent. That makes Geely the third largest shareholder in Aston Martin after the Lawrence Stoll-led Yew Tree Consortium, which holds approximately 21 per cent, and the Saudi Arabian Public Investment Fund, with around 18 per cent.
“Our decision to increase our shareholding in Aston Martin reflects our confidence in the company’s growth prospects, its technologies and its management team, ” says Geely Holding Group Chairman Eric Li. “Since first acquiring our minority holding last September, we have worked collaboratively with executive chairman Lawrence Stroll and his colleagues and now look forward to exploring joint technology synergies and new growth opportunities to help this iconic automotive brand to achieve its full potential.”
Aston Martin is reportedly planning its first plug-in hybrid for 2024 and its first BEV model for 2025. From 2026, all new model series from Aston Martin shall come electrified as an option. However, Aston still has to specify the degree of electrification – a 48-volt mild-hybrid system could also be defined as an electric drive, although the car cannot drive a single metre with electricity alone.
Geely could push Aston Martin in the direction of complete electrification. As part of a joint statement, managers from both companies speak of “exploring joint technology synergies” and access to Geely’s “range of technologies”.
Concretely, Geely Holding Group Chairman Eric Li says the investment shows Geely’s in Aston Martin’s “growth prospects, its technologies and its management team. Since first acquiring our minority holding last September, we have worked collaboratively with executive chairman Lawrence Stroll and his colleagues and now look forward to exploring joint technology synergies and new growth opportunities to help this iconic automotive brand to achieve its full potential.”
Lawrence Stroll, Executive Chairman of the Board, adds that “Geely can offer us a deep understanding of the key strategic growth market of China as well as the opportunity to access their range of technologies. Geely shares our vision for Aston Martin and wants to be a more significant shareholder. This transaction enables the creation of a long-term partnership with Geely – a relationship that I believe will bring very significant value for all of our shareholders over time.”
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