D
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Looks like a bidders' battle between Indias' Mahindra Group and Italys' Investindustrial Group. The latter brings technical cooperation with Daimler-Benz to the table.
Don´t feel attacked it is just a picture 
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Definitely one of the German brands.
Aside from that, I for once think that Daimler would be a best fit since they could greatly benefit from it.
For example, VAG has Bentley, Lamborghini, even Porsche (
) and the Bugatti name. BMW has the Rolls-Royce brand (enough said).
Daimler on the other hand, had the Maybach flop and it will be hard to be able to sustain it's brand's cachet solely on an S-Class expansion, especially after diluting itself even further with cheap versions of cars bearing the Starmark. The Aston Martin brand would be the ticket to elevate Daimler to the Rolls-Royce and Bentley club (as they tried, and failed with Maybach) while at the same time be able to come up with better (read: more reliable and AMG engined sports cars in tuxedos) products to compete with the likes of Lambos, R8s, S8, Bentley GTs, M6, B7 Alpinas, and also create higher end luxury sedans with i.e. Rapide 'DNA', to compete with the likes of Ghosts and Flying Spurs plus all the future amazing high end and uber luxury models their competition already has up their sleeves.
If you ask me, Daimler should be the one. They have to go upmarket, not down. The S-Class alone is not enough. Today, 90% of Mercedes-Benzes are no longer viewed or perceived as 'special'. Quite the contrast to what Mercedes-Benz was all the way up to the 1990s (back when Toyota released their Lexus brand… ). This is a huge turn off for young affluent buyers. AM may be the answer.
Aside from that, I for once think that Daimler would be a best fit since they could greatly benefit from it.
For example, VAG has Bentley, Lamborghini, even Porsche (
) and the Bugatti name. BMW has the Rolls-Royce brand (enough said).Daimler on the other hand, had the Maybach flop and it will be hard to be able to sustain it's brand's cachet solely on an S-Class expansion, especially after diluting itself even further with cheap versions of cars bearing the Starmark. The Aston Martin brand would be the ticket to elevate Daimler to the Rolls-Royce and Bentley club (as they tried, and failed with Maybach) while at the same time be able to come up with better (read: more reliable and AMG engined sports cars in tuxedos) products to compete with the likes of Lambos, R8s, S8, Bentley GTs, M6, B7 Alpinas, and also create higher end luxury sedans with i.e. Rapide 'DNA', to compete with the likes of Ghosts and Flying Spurs plus all the future amazing high end and uber luxury models their competition already has up their sleeves.
If you ask me, Daimler should be the one. They have to go upmarket, not down. The S-Class alone is not enough. Today, 90% of Mercedes-Benzes are no longer viewed or perceived as 'special'. Quite the contrast to what Mercedes-Benz was all the way up to the 1990s (back when Toyota released their Lexus brand… ). This is a huge turn off for young affluent buyers. AM may be the answer.
H
Hofmeister
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Aston Martin owner Investment Dar Co. has received competing bids from Investindustrial and Mahindra & Mahindra Ltd. for half the sports-car maker, three people familiar with the matter said.
Investment Dar and other Kuwaiti investors who own Gaydon, U.K.-based Aston Martin may choose a winner as early as this weekend, said the people, who asked not to be identified because the talks are private. The buyer will get the stake as part of a capital increase, two of the people said. Investindustrial, a European private-equity fund based in London, offered just under 250 million pounds ($401 million), said the people. Indian automaker Mahindra then trumped the offer with a higher bid, they said.
A decision would mark the end of a months-long search by Investment Dar to find an investor for Aston Martin,, people familiar with the matter said earlier this month. For Investment Dar, part of the group that bought Aston Martin from Ford Motor Co. (F) for 503 million pounds in 2007, the proceeds would help the company pay off debt.
The winning bidder will get 50 percent of the voting rights and a 40 percent equity stake, one of the people said. Investment Dar, the other Kuwaiti investors and Aston Martin management will retain the rest, the person said.
Officials at Investindustrial and Aston Martin declined to comment. Mahindra and Investment Dar did not respond to requests for comment outside of regular business hours yesterday. The talks were reported earlier yesterday by Private Equity News.
Boosting Volumes
A new backer for the iconic British brand may help the maker of the 1.2-million-pound One-77 to boost volumes and develop cars that can challenge Volkswagen AG’s Bentley and Fiat’s Ferrari. Investindustrial earlier this year sold Italian motorcycle maker Ducati Motor Holding SpA to Volkswagen AG’s Audi brand.
Investindustrial’s offer for Aston Martin includes plans to use technology and car parts from AMG, the Mercedes-Benz unit that makes sports cars, said two of the people. The buyout firm will invest in Aston Martin’s existing models, and potentially add new vehicles, to attract buyers, they said.
An official at Daimler AG, which owns Mercedes, declined to comment.
While Aston Martin still gets engines from Ford, it lost access to Ford’s other resources after the sale and remains the only global luxury brand that’s not part of a larger auto group.
Development Spending
That independence could be a handicap with the auto industry under pressure to develop technologies to improve fuel efficiency. Bayerische Motoren Werke AG is investing more than 1 billion euros ($1.3 billion) this year on making engines more efficient and developing electric vehicles. That sum exceeds Aston Martin’s 2011 revenue of 507 million pounds.
The British carmaker’s adjusted earnings before interest taxes, depreciation and amortization last year fell 18 percent to 76.2 million pounds, with deliveries steady at about 4,200 vehicles.
http://www.bloomberg.com/news/2012-11-23/aston-martin-said-to-get-bids-for-50-stake-in-carmaker.html
Investment Dar and other Kuwaiti investors who own Gaydon, U.K.-based Aston Martin may choose a winner as early as this weekend, said the people, who asked not to be identified because the talks are private. The buyer will get the stake as part of a capital increase, two of the people said. Investindustrial, a European private-equity fund based in London, offered just under 250 million pounds ($401 million), said the people. Indian automaker Mahindra then trumped the offer with a higher bid, they said.
A decision would mark the end of a months-long search by Investment Dar to find an investor for Aston Martin,, people familiar with the matter said earlier this month. For Investment Dar, part of the group that bought Aston Martin from Ford Motor Co. (F) for 503 million pounds in 2007, the proceeds would help the company pay off debt.
The winning bidder will get 50 percent of the voting rights and a 40 percent equity stake, one of the people said. Investment Dar, the other Kuwaiti investors and Aston Martin management will retain the rest, the person said.
Officials at Investindustrial and Aston Martin declined to comment. Mahindra and Investment Dar did not respond to requests for comment outside of regular business hours yesterday. The talks were reported earlier yesterday by Private Equity News.
Boosting Volumes
A new backer for the iconic British brand may help the maker of the 1.2-million-pound One-77 to boost volumes and develop cars that can challenge Volkswagen AG’s Bentley and Fiat’s Ferrari. Investindustrial earlier this year sold Italian motorcycle maker Ducati Motor Holding SpA to Volkswagen AG’s Audi brand.
Investindustrial’s offer for Aston Martin includes plans to use technology and car parts from AMG, the Mercedes-Benz unit that makes sports cars, said two of the people. The buyout firm will invest in Aston Martin’s existing models, and potentially add new vehicles, to attract buyers, they said.
An official at Daimler AG, which owns Mercedes, declined to comment.
While Aston Martin still gets engines from Ford, it lost access to Ford’s other resources after the sale and remains the only global luxury brand that’s not part of a larger auto group.
Development Spending
That independence could be a handicap with the auto industry under pressure to develop technologies to improve fuel efficiency. Bayerische Motoren Werke AG is investing more than 1 billion euros ($1.3 billion) this year on making engines more efficient and developing electric vehicles. That sum exceeds Aston Martin’s 2011 revenue of 507 million pounds.
The British carmaker’s adjusted earnings before interest taxes, depreciation and amortization last year fell 18 percent to 76.2 million pounds, with deliveries steady at about 4,200 vehicles.
http://www.bloomberg.com/news/2012-11-23/aston-martin-said-to-get-bids-for-50-stake-in-carmaker.html
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- Marcus
Definitely one of the German brands.
Aside from that, I for once think that Daimler would be a best fit since they could greatly benefit from it.
For example, VAG has Bentley, Lamborghini, even Porsche (
Daimler on the other hand, had the Maybach flop and it will be hard to be able to sustain it's brand's cachet solely on an S-Class expansion, especially after diluting itself even further with cheap versions of cars bearing the Starmark. The Aston Martin brand would be the ticket to elevate Daimler to the Rolls-Royce and Bentley club (as they tried, and failed with Maybach) while at the same time be able to come up with better (read: more reliable and AMG engined sports cars in tuxedos) products to compete with the likes of Lambos, R8s, S8, Bentley GTs, M6, B7 Alpinas, and also create higher end luxury sedans with i.e. Rapide 'DNA', to compete with the likes of Ghosts and Flying Spurs plus all the future amazing high end and uber luxury models their competition already has up their sleeves.
If you ask me, Daimler should be the one. They have to go upmarket, not down. The S-Class alone is not enough. Today, 90% of Mercedes-Benzes are no longer viewed or perceived as 'special'. Quite the contrast to what Mercedes-Benz was all the way up to the 1990s (back when Toyota released their Lexus brand… ). This is a huge turn off for young affluent buyers. AM may be the answer.
I like the sound of this, I really do, but Mercedes just isn't focused enough I don't think. They will try to make Aston an extension of Mercedes and/or botch the whold brand IMO. I just don't think they can do it. I would love to see this happen though. A Vantage with the 6.2L AMG V8 and a new N/A V12 for Aston and a turbo version for Mercedes. New Logonda sedan with a hulking power and really thick seats to bully the Phantom off the road. Mercedes' 600 Gross/Pullman with a knockout interior to again, bully the Phantom off the road. Yes this could happen, but I have my doubts about Mercedes.
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Deleted member 25
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Bmw or Toyota would be the best choice, Toyota having more money, BMW the mechanical components and the know how of dealing with british brands.
D
Deleted member 25
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They already have too much brands, Aston Martin would be ostracised there.
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BMW have the engines and gearboxes fit for Astons and Toyota has the cash to bank roll the brand though synergy with Land Rover and Jaguar would benefit all three brands from all aspects. VAG would be a boring buyer, they already have Bentley, Audi and Porsche. No need to cram in another brand that will just be a parts-bin brand.
EnI
Piston Pioneer
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Fiat? You gotta be kidding me ... They already have Maserati & Ferrari & AR with all the premium sporty cars, so no need for AM in their portfolio. Not to mention the iffy future of Fiat ... AM under Fiat would be a suicide.
Toyota? They have resources, although any acquisition of non-Japanese or even non-Asian brand by Toyota is IMO a sci-fi scenario. The corporate culture is too different to eg. implement an existing company into Toyota corporation successfully. Yet completely different story is the acquisition of brand only, which IMO would also fail. Toyota IMO is too clumsy to manage a British brand with great heritage. Also I can't see many synergies there. And there is still space within Lexus brand to expand it around LF-A - so, in the territory occupied by AM. IMO Toyota would execute such scenario better than eg. managing AM.
Daimler? No need for Daimler to marketing an additional brand. Mercedes brand name is strong & flexible enough, so no need for yet another brand in Daimler's portfolio. I would even ditch smart, and stick with Mercedes-Benz only. Yet IMO a perfect scenario would be Mercedes as umbrella brand, with several sub-brands like Mercedes smart, Mercedes Benz, Mercedes AMG, Mercedes McLaren, Mercedes Maybach.
VAG? Sure they have resources, and the synergies would be great. But VAG's portfolio is already cluttered, and there would be quite some interference with other VAG's brands like Audi, Porsche, Bentley, and even Bugatti & Lamborghini to some extent. Yet VAG have showed us they can manage multi-brand portfolio with minimal interbrand cannibalism. It could work, but then the VAG's portfiolio woud be on the edge of overkill. It already is without AM IMO. Not to mention that VAG ownership - namely due to already heavy brand portfolio - means a little image-stroke for each of the brand, since it becomes "yet another brand in Piech's / VAG's collection".
JLR? Sure AM would fit there perfectly image wise. It would be a "PAG reunion". Yet I can't see enough synergies. JLR is weak - TATA perhaps have resources, yet the JLR company (especially if paired with AM) can barely be profitable. Production of every platform is low-volume & therefore costly. From the business POV the AM acquisition by JLR would be a disaster IMO.
BMW? IMO it's a bit too late. Or not? There still is some gap between BMW & RR brand. And AM product portfolio would be a perfect fit for BMW Group. There's even a place for a luxury SUV - eg under AM Lagonda name. There would be some synergies, yet the question whether the BMW RWD modular platform would work well for AM. Perhaps in some next generation - when developed with AM in mind as well. But I doubt BMW is interested in AM whatsoever - at least not until the company is free of liabilities (eg. huge debts, contract-sealed ties to Ford etc).
Conclusion: hypothetically VAG, JLR & BMW could provide a "happy home" for AM. Everyone of them has advantages & threats - so in either case AM would gain some points, while loosing some others at the same time.
Personally I would like to see AM in BMW Group portfolio. Since I still see the gap between BMW & RR brand - and it can be filled either by eg. AM, or by sur-7er models & various "super cars" & special M models. But AM under BMW can become too "BMWized" (OK, VAG parenthood comes with similar threat). Although reunion with Jaguar & LR would also be great for AM - at least image wise. While VAG sure can provide best "living conditions" for AM.
Toyota? They have resources, although any acquisition of non-Japanese or even non-Asian brand by Toyota is IMO a sci-fi scenario. The corporate culture is too different to eg. implement an existing company into Toyota corporation successfully. Yet completely different story is the acquisition of brand only, which IMO would also fail. Toyota IMO is too clumsy to manage a British brand with great heritage. Also I can't see many synergies there. And there is still space within Lexus brand to expand it around LF-A - so, in the territory occupied by AM. IMO Toyota would execute such scenario better than eg. managing AM.
Daimler? No need for Daimler to marketing an additional brand. Mercedes brand name is strong & flexible enough, so no need for yet another brand in Daimler's portfolio. I would even ditch smart, and stick with Mercedes-Benz only. Yet IMO a perfect scenario would be Mercedes as umbrella brand, with several sub-brands like Mercedes smart, Mercedes Benz, Mercedes AMG, Mercedes McLaren, Mercedes Maybach.
VAG? Sure they have resources, and the synergies would be great. But VAG's portfolio is already cluttered, and there would be quite some interference with other VAG's brands like Audi, Porsche, Bentley, and even Bugatti & Lamborghini to some extent. Yet VAG have showed us they can manage multi-brand portfolio with minimal interbrand cannibalism. It could work, but then the VAG's portfiolio woud be on the edge of overkill. It already is without AM IMO. Not to mention that VAG ownership - namely due to already heavy brand portfolio - means a little image-stroke for each of the brand, since it becomes "yet another brand in Piech's / VAG's collection".
JLR? Sure AM would fit there perfectly image wise. It would be a "PAG reunion". Yet I can't see enough synergies. JLR is weak - TATA perhaps have resources, yet the JLR company (especially if paired with AM) can barely be profitable. Production of every platform is low-volume & therefore costly. From the business POV the AM acquisition by JLR would be a disaster IMO.
BMW? IMO it's a bit too late. Or not? There still is some gap between BMW & RR brand. And AM product portfolio would be a perfect fit for BMW Group. There's even a place for a luxury SUV - eg under AM Lagonda name. There would be some synergies, yet the question whether the BMW RWD modular platform would work well for AM. Perhaps in some next generation - when developed with AM in mind as well. But I doubt BMW is interested in AM whatsoever - at least not until the company is free of liabilities (eg. huge debts, contract-sealed ties to Ford etc).
Conclusion: hypothetically VAG, JLR & BMW could provide a "happy home" for AM. Everyone of them has advantages & threats - so in either case AM would gain some points, while loosing some others at the same time.
Personally I would like to see AM in BMW Group portfolio. Since I still see the gap between BMW & RR brand - and it can be filled either by eg. AM, or by sur-7er models & various "super cars" & special M models. But AM under BMW can become too "BMWized" (OK, VAG parenthood comes with similar threat). Although reunion with Jaguar & LR would also be great for AM - at least image wise. While VAG sure can provide best "living conditions" for AM.
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Your bold point is why AM would fit into the family. It would take the entire concern from being low volume to utilizing economies of scale. The Vantage could share components with the F-Type and the DB9 with the XK. And V8 engine blocks could be shared across Land Rover, Aston Martin and Jaguar - not to mention electronics and fuel systems. All of these brands could have dealerships next one to one another and share service centres and thus attracting entrepreneurs who want to open up dealerships.
EnI
Piston Pioneer
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^
Sure, but still ... even with AM on board we talk about very low-volume platform production here. AM is a low-volume brand. It doesn't contribute to the volumes & economies of scale.
Mind the Jaguar platforms aren't shared with any other mid-volume brand at least. Sure eg. LR would offer a platform for a Lagonda SUV, but that's it. I can't imagine several SUVs in AM portfolio. AM is not Porsche, it's more like Bentley.
JLRAM without at least a solid big automotive partner is a very none-case business wise. Development of new platforms etc would kill the company for sure! C'mon, even Porsche needed VAG to survive!
Yes, JLR have TATA as a parent but how competent & ready TATA is for providing JLR(+AM) with anything else but pure cash? Do they have enough know-how & expertise?
Regarding dealerships ... IMO AM would fit better into Bentley or Rolls-Royce dealerships than into JLR one.
Btw, how serious is AM takeover by anyone right now? Pure rumors, or is there something more substantial behind it?
Sure, but still ... even with AM on board we talk about very low-volume platform production here. AM is a low-volume brand. It doesn't contribute to the volumes & economies of scale.
Mind the Jaguar platforms aren't shared with any other mid-volume brand at least. Sure eg. LR would offer a platform for a Lagonda SUV, but that's it. I can't imagine several SUVs in AM portfolio. AM is not Porsche, it's more like Bentley.
JLRAM without at least a solid big automotive partner is a very none-case business wise. Development of new platforms etc would kill the company for sure! C'mon, even Porsche needed VAG to survive!
Yes, JLR have TATA as a parent but how competent & ready TATA is for providing JLR(+AM) with anything else but pure cash? Do they have enough know-how & expertise?
Regarding dealerships ... IMO AM would fit better into Bentley or Rolls-Royce dealerships than into JLR one.
Btw, how serious is AM takeover by anyone right now? Pure rumors, or is there something more substantial behind it?
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Hofmeister
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Aston Martin has confirmed that it is in advanced talks with investors for an equity injection.
A document sent to bond holders in the firm today reported: "Aston Martin, with the support of its shareholders, confirms that discussions are at an advanced stage to secure a capital increase which will ensure it can deliver its medium and long-term growth plans."
Both Indian conglomerate Mahindra & Mahindra and Italian buyout firm Invest Industrial are reported to be vying to invest in Aston, with the former offering a significantly greater cash injection and the latter offering less financial support but a technical partnership with Mercedes and AMG.
Initial reports suggested that Invest Industrial were favourites to secure the £250m deal, but sources now suggest that Mahindra & Mahindra has moved ahead in negotiations and is the favoured partner. The winning bidder is expect to own 40% of the company and have 50% of the voting rights.
Financial analysts are reporting that the admission to bond holders that talks are underway signals that a deal is likely to be imminent, and could be concluded within a week.
http://www.autocar.co.uk/car-news/new-cars/aston-martin-confirms-equity-talks
A document sent to bond holders in the firm today reported: "Aston Martin, with the support of its shareholders, confirms that discussions are at an advanced stage to secure a capital increase which will ensure it can deliver its medium and long-term growth plans."
Both Indian conglomerate Mahindra & Mahindra and Italian buyout firm Invest Industrial are reported to be vying to invest in Aston, with the former offering a significantly greater cash injection and the latter offering less financial support but a technical partnership with Mercedes and AMG.
Initial reports suggested that Invest Industrial were favourites to secure the £250m deal, but sources now suggest that Mahindra & Mahindra has moved ahead in negotiations and is the favoured partner. The winning bidder is expect to own 40% of the company and have 50% of the voting rights.
Financial analysts are reporting that the admission to bond holders that talks are underway signals that a deal is likely to be imminent, and could be concluded within a week.
http://www.autocar.co.uk/car-news/new-cars/aston-martin-confirms-equity-talks
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A cash injection is safer for investors than assuming control over the company, especially if other investors are on board too. £250m isn't terribly much. However Aston only have three models, a Vantage, DB9 and a stretched DB9 aka Rapide. If they wish to add a fourth model then they will need to raise more money but also make a financial case for profitability.
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