British motoring icon Aston Martin has confirmed it has signed a technical partnership deal with Germany's Mercedes to help it to develop a new generation of models with powerful V8 engines.
As part of the deal, Mercedes owner Daimler will take a stake of up to 5% in the 100-year-old maker of the DB9 and Vanquish sports cars.
According to What Car? editor-in-chief Chas Hallett, the investment iinjection is exactly what is needed by the firm.
Mr Hallett told Sky News: "This is the deal that Aston has needed for a long time - a ready supply of world class sports car engines which it couldn't afford to develop itself.
"It's great news for the UK sports car maker."
Aston Martin became a British icon with the James Bond franchise The investment will help Aston Martin to compete better with Volkswagen's Bentley and rival UK luxury car manufacturer Jaguar Land Rover, which was bought by India's Tata Motors in 2008 and has since achieved huge sales growth, especially in China.
No value for the Aston Martin deal was provided but the two companies said that a supply agreement between Mercedes-AMG, Daimler AG and Aston Martin was an essential element of the arrangement.
"The proposed deal will see Aston Martin access significant Mercedes-AMG GmbH and Mercedes-Benz Cars' resources," Ian Minards, Aston Martin's product development director, said in a statement.
"Allowing the development of bespoke V8 powertrains and the use of certain components of electric and electronic architecture."
Aston Martin, favoured back in the day by James Bond and the Prince of Wales, sold 2,340 cars in the nine months to September 30 last year, down 19% on 2011.
Italian private equity group Investindustrial last year bought a 37.5% stake in Aston Martin for £157m via a capital increase agreed with majority Kuwaiti owner Investment Dar.
Aston Martin said the deal would enable it to invest in new products and a technology programme to 2018.
Royal newlyweds drove off on honeymoon in Prince Charles's vintage motor Definitive agreements concerning the new partnership will be signed during the second half of the year, Stuttgart-based Daimler said.
Earlier this week Bentley, which is owned by Volkswagen, announced a plan to make the world's most luxurious and powerful 4x4 vehicle in 2016.
The high-end luxury car sector continues to see growth above other areas, with emerging markets crucial to future strategic vision for many marques.
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