Aston Martin Lagonda’s route to viability is a brain-teaser worthy of Q, James Bond’s quartermaster famous for turning everyday objects into whizzy tools. The 2.6 billion pound carmaker’s latest deal with $11 billion Lucid shows the marque made famous by the fictional spy is, however, making progress.
, and faces more competition from bigger premium brands, like Porsche. The risk is it gets left behind as the industry shifts away from combustion engines, and ramps up spending on software.
The deal with Lucid – majority-owned by the PIF, handily enough – will make Aston’s ambition to roll out its first electric vehicle by 2025 more credible. It’s a cheaper and less dilutive way to insource technology than a previous deal inked with Mercedes-Benz. Lucid will receive shares worth 3.7% of Aston’s total, just over a third of the additional 10% stake Mercedes would have received, and a commitment to buy the U.S. group’s powertrain and battery systems.
The deal sent Aston shares up over 9% in early Monday trading. The group is still valued at around 12 times 2023 EBITDA, around half Ferrari’s multiple, using Refinitiv forecasts. That discount may not close soon, but at least there’s now a plan of sorts.
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