Geely plotting Aston Martin rescue
Volvo and Lotus owner considering throwing ailing British sports car-maker cash lifelineChina's Geely is reportedly in emergency talks with Aston Martin's owners with a view to pumping much-needed cash into the famous car-maker to prevent it failing.
According to the
, the Chinese car-making giant has already begun its due diligence checks with a view to purchasing a stake in struggling Aston Martin, which is desperate for a cash injection.As part of the talks, Geely is said to be considering forging a new technical partnership that could see Aston slash development costs by using existing tech already employed by the Volvo, Geely and Lynk & Co brands.
A potential hurdle to the deal is Aston's existing powertrain and technology alliance with Daimler, but one seemingly easy to overcome since Geely already owns 10 per cent of the German car-maker.
According to four people claimed to be close to the negotiations, Geely is just one of Aston Martin's potential saviours in its time of need.
The famous British brand is struggling off the back of falling sales that have seen its share price nose drive 80 per cent since the company first became public back in 2018.
Earlier this week Aston announced an unexpected profit warning and revealed it was in discussions with "potential strategic investors" but, until now, it has not revealed who was interested.
In the meantime the Brit car-maker, which is on the eve of launching the DBX SUV, has been forced to draw down on $100m ($A145m) in high-interest debt, replicating a move it made back in September when it borrowed $150 million ($A217m) to stay afloat.
As well as Geely, F1 billionaire Lawrence Stroll is also reportedly close to making an investment of £200 million ($A380m) to gain control of 19.9 per cent of the company.
Rumours suggest Stroll will then further increase his slice of the car-maker by snapping up shares from Aston's existing major shareholders in an attempt to take control.
According to reports, Geely is unlikely to pursue Aston if Stroll goes ahead with his plans.
Aston Martin has chosen not to comment on any of its potential suitors but says it already has 1800 orders for the new DBX, which will go into production at the car-maker's new Welsh plant in the second quarter of this year.
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