Geely, the Chinese automaker and owner of Volvo/Polestar and Lotus, has increased its stake in Aston Martin. Geely previously owned 7.6% of the luxury automaker, but now holds a 17% stake, making it the third largest stakeholder in Aston Martin, following Lawrence Stroll and the Saudi Arabia Public Investment Fund.
The increased stake signifies Geely’s growing involvement in Aston Martin, as expressed by Geely CEO Eric Li who mentioned the partnership’s focus on “exploring joint technology synergies and new growth opportunities.” Besides the financial boost, Geely’s expanded share of the Chinese luxury market and expertise in electrification present two significant advantages for the company.
Aston Martin has faced challenges in recent years, reporting operating losses of $95 million and $146 million in 2021 and 2022 respectively. While the introduction of the DBX SUV has partially addressed declining sales, competitors like the Lamborghini Urus and Bentley Bentayga continue to dominate the “Super SUV” segment. Additionally, Aston Martin recently postponed the mid-engined Vanquish without providing an explanation, and the launch of the Valhalla PHEV hypercar has been delayed despite an initial 2021 target.
Geely’s increased stake in Aston Martin may provide the opportunity to streamline the company’s operations. With a greater stake, Geely is expected to share its vast resources and expertise to assist Aston Martin. Notably, Geely CEO Eric Li had previously attempted to acquire the brand outright in September 2022, indicating his affinity for Aston Martin.
While specific plans remain undisclosed, Aston Martin has expressed a strong commitment to electrification. The company aims to release its first electric vehicle within two years and has committed to offering electric powertrain options for all its models by 2026.
