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?
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Which investor will win? We’ll find out in the next few weeks.
