Aston Martin may soon find itself stuck between a rock and a hard place. Unlike most ultra-luxury rivals, Aston Martin lacks the strength of a full-line vehicle family. Take Bentley as an example; its fuel-economy numbers will be tempered by other products in the Volkswagen Group family, ensuring that the brand will meet upcoming CAFE requirements. As a stand-alone manufacturer, Aston Martin seriously needs a more diverse (and more fuel-efficient) product line if it is to survive. Selling a handful of badge-engineered Toyota iQs as Aston Martin Cygnets won’t be enough to save them.
As Just-Auto explains, current owner Investment Dar is looking to sell off 50-percent of its stake in Aston Martin, reportedly to pay down debt. Last week, it was reported that Investindustrial, which has a technical partnership with Mercedes-Benz, was close to a deal on the shares. At the last minute, India’s Mahindra and Mahindra reportedly entered a higher bid for the available stake in Aston.
For Investment Dar, the question comes down to this: is a higher short-term profit worth risking the future of Aston Martin for? Analysts see Mahindra’s offer for the company as a “vanity purchase,” which would give the Indian manufacturer a premium brand. A sale to Investindustrial, even at a lower price, would likely give Aston martin firmer ground to build from, especially in light of the company’s relationship with Mercedes-Benz?
Which investor will win? We’ll find out in the next few weeks.
Kurt Ernst has been passionate about automobiles and driving nearly his entire life. His early years were shaped working in the family service station, though his real passion was auto racing. After graduating from the University of Colorado, Kurt spent a year club racing with the Sports Car Club of America, before focusing on a business career in marketing and project management. Later, his passion for writing and the automotive hobby found him freelancing for a variety of automotive news sites, including Automotive Addicts and Motor Authority, where his work was syndicated and appeared in several national publications. Recognized as an expert in the automotive field, Kurt joined Hemmings Motor News as an Associate Editor in 2013, and in the years since has progressed to Editor, Hemmings Daily; Managing Editor for Hemmings Motor News, Hemmings Classic Car, Hemmings Muscle Machines, and the Hemmings Daily; and now, Managing Editor, Hemmings Auctions. Kurt was instrumental in organizing the Hemmings Motor News Concours d’Elegance from 2013-2019, and has served as a judge at this event and The Vintage Racing Stable Concours d’Elegance. A Skip Barber Racing School graduate and prolific writer, Ernst is also skilled in copyediting, project management, brand development, and public relations.
