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Germany and England bury the hatchet: Aston Martin and Mercedes-Benz finalize partnership

It’s official. Aston Martin and Daimler have tied the knot.

The two companies have officially signed a formal agreement for a technical partnership, a move that’s been anticipated since the British and Germans announced the potential partnership earlier this year.

As was expected, the deal involves Mercedes-Benz’s AMG performance division supplying engines to Aston Martin. AMG will supply “bespoke” V8s for Aston’s next generation of sports cars, so it doesn’t seem like Aston will be using any off-the-shelf AMG engines.

A statement said the new engines will emphasize both high performance and fuel efficiency, so while AMG may be building completely new engines for Aston, don’t be surprised if it follows the same downsize-and-add-turbochargers mantra it did when increasing the efficiency of its own cars.

It will also be interesting to see what happens to Aston’s signature 5.9-liter V12. The big engine is still important as a symbol of prestige, and it (or some kind of V12) is so closely associated with the brand that it would be hard to imagine Aston giving it up for an all-V8 lineup.

In addition to the headline engine deal, the companies said they were working on an agreement on the supply of electrical components, and that even more cooperation is possible in the future.

The deal should help both carmakers.

Aston Martin is very small, meaning it doesn’t always have the resources to undertake massive development projects – like the design of a new engine.

On the other hand, working with Aston gives Daimler yet another outlet for its AMG engines, amortizing development costs by putting the engines in more cars. Plus Daimler gets a five-percent stake in Aston, which will hopefully benefit its shareholders and profits.

Meanwhile, consumers will likely get a very different – but improved – Aston Martin lineup in a few years.

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