Daimler is to take a stake of up to 5% in Aston Martin as part of a technical tie-up between the British sports car maker and AMG, the performance division of Mercedes-Benz.

Under the agreement Daimler and Aston Martin will co-develop V8 engines to be supplied by Mercedes-AMG and the two groups are also working on cross-supply of other components.

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The technical partnership is between Daimler, Mercedes-AMG GmbH (a 100% subsidiary of Daimler) and Aston Martin.

The agreement follows a letter of intent signed in July this year.

The parties are working to conclude the terms of an additional cooperation for the supply of electric/electronic (e/e) components. Furthermore, the two groups will investigate additional areas of cooperation in the future. Aston Martin will continue to manufacture all of its sports cars at its Gaydon headquarters in Warwickshire, England.

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