Photo: Geely/Aston Martin/edited by autoevolution
Geely seems to never cease to expand. It is not only presenting new brands of its own such as ZEEKR and Radar but also has an appetite for iconic western automakers. After buying Volvo and Lotus and getting a share of Mercedes-Benz, the company now announced it has 7.6% of Aston Martin.
The Chinese titan did not disclose much about the deal or its goals with it. It only stated that it now has 7.6% “of the ordinary share capital of the ultra-luxury British performance brand.” Daniel Donghui Li noted that “Geely Holding can contribute to Aston Martin’s future success.” The Geely Holding Group CEO said his company wants to do that by “exploring potential opportunities to engage and collaborate.” And that’s it.
Curiously, Mercedes-Benz currently owns about 12% of Aston Martin, and it will reach 20% of shareholding by 2023. In exchange for its shares, the British automaker gets engines, motors, electrical architectures, and other components from the German carmaker. Geely owns 9.7% of Mercedes-Benz shares, which is still below the 10% of shareholding the BAIC Group has as the company’s largest individual shareholder. That shows how entangled the automotive industry currently is.
Aston Martin is the part that may get more from this proposed partnership. Geely is developing an expertise in electric vehicles from which the British company may take advantage. One example is the Sustainable Experience Architecture (SEA), which underpins the Lotus Eletre and the ZEEKR 001. Will it be premium enough for an Aston Martin? We’ll probably discover about that in a few years.
On Geely’s part, the stock purchase is an endorsement of what Lawrence Stroll is doing with the company after acquiring a 16.7% stake in the company in 2020. Stroll said he wanted Aston Martin to sell electric cars by 2025, which both Mercedes-Benz and Geely can help the company deliver.
Curiously, Mercedes-Benz currently owns about 12% of Aston Martin, and it will reach 20% of shareholding by 2023. In exchange for its shares, the British automaker gets engines, motors, electrical architectures, and other components from the German carmaker. Geely owns 9.7% of Mercedes-Benz shares, which is still below the 10% of shareholding the BAIC Group has as the company’s largest individual shareholder. That shows how entangled the automotive industry currently is.
Aston Martin is the part that may get more from this proposed partnership. Geely is developing an expertise in electric vehicles from which the British company may take advantage. One example is the Sustainable Experience Architecture (SEA), which underpins the Lotus Eletre and the ZEEKR 001. Will it be premium enough for an Aston Martin? We’ll probably discover about that in a few years.
On Geely’s part, the stock purchase is an endorsement of what Lawrence Stroll is doing with the company after acquiring a 16.7% stake in the company in 2020. Stroll said he wanted Aston Martin to sell electric cars by 2025, which both Mercedes-Benz and Geely can help the company deliver.
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