Chinese automaker Zhejiang Geely Automobile Holdings (Geely) is in talks to acquire a stake in struggling UK sports car manufacturer Aston Martin Lagonda Global Holdings, according to reports citing sources close to the company.
The Financial Times suggested Geely was in talks with the management of Aston Martin and other investors over the acquisition of a stake and the Chinese automaker is currently conducting due diligence on the 107 year-old icon.
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Last month, Aston Martin confirmed it was in early stage talks with potential investors as it looked to raise funds following a disappointing financial performance in 2019.
The company said it was “reviewing its funding requirements and various funding options”.
Aston Martin last week warned its 2019 earnings would be almost 50% lower than in the previous year due to weak demand in Europe.
The company also faces the huge long term challenge of keeping up with the technological and environmental demands on the global automotive industry, including the use of autonomous driving systems and the long term switch to battery power.
Last November the company began sales of the DBX model which is made at a new plant in Wales.
Geely is one of China’s most acquisitive carmakers, having already acquired Volvo Cars and an almost 50% stake in Proton Holdings of Malaysia.
