Geely is reportedly in talks with the British automaker.
Recent reports indicate Geely is negotiating with Aston Martin to potentially invest in the British automaker. This is alarming to some, considering Geely has already purchased Volvo and Lotus. The result might be more like Geely’s purchase of a significant but not commanding share in Daimler, which owns Mercedes-Benz and Smart.
This news comes on the heels of reports that Canadian billionaire and owner of the Racing Point Formula One team, Lawrence Stroll, is weighing buying Aston Martin. The fallout of such a purchase could be interesting for both car production and motorsports, considering it could put the fate of Red Bull Racing in jeopardy.
However, the interest of Geely doesn’t necessarily preclude any investment from Stroll, with both parties and possibly more becoming potential stakeholders in the British automaker. The real question is who will wear the pants once the dust settles? That’s where things could get interesting, and it will definitely affect the future of Aston Martin.
Some view this strategy from Geely not as a move of brilliance, but rather desperation. With the Chinese automotive market constricting and Chinese automakers having little luck penetrating European and North American markets, acquiring stakes in established companies on this side of the world could help open doors. At least that’s that thought.
Ford owned both Volvo and Aston Martin at the same time. Both proved to be huge financial drains, although Volvo appears to be on a big upswing under Geely ownership. Should Aston Martin also come under the same financial umbrella, the financial stakes of James Bond’s preferred car could take a big turn for the better.
In the meantime, Aston Martin has been forging ahead in two unique areas: electrification and SUV production. Both are controversial moves for a company with such a rich history, with some thinking they’re financial rat holes. For now, it appears there’s no intention of Aston Martin abandoning internal combustion engines or cars.
Source: Financial Times (subscription required), The Washington Post
Image credit: Aston Martin
