Aston Martin & Daimler finalize their engine deal, will explore future areas of cooperation.

Companies will develop a bespoke V8 engine that combines high performance with fuel efficiency

Aston Martin and Daimler have officially tied the knot as the companies have a signed a series of definitive agreements which will see the two automakers working together.

Under the term of the agreement, Aston Martin and AMG will develop a bespoke V8 engine that combines high performance with fuel efficiency. The engine will be used in the "next generation of models that will incorporate cutting edge technology."

In return, Daimler will receive up to a five percent stake in Aston Martin. The company will have non-voting shares but will receive observer status on the Aston Martin Holdings board.

The companies are also working on a deal to share electrical components but there's no word on when that agreement could be finalized.

In a statement, an Aston Martin spokesperson said “This strategic collaboration for Aston Martin will, in our next generation of luxury sports cars, offer our customers increased performance and efficiency whilst retaining the unique character and style of an Aston Martin.”

Aston Martin's sentiments were echoed by AMG Chairman Tobias Moers who said “By signing the Umbrella Agreement and the Engine Agreement both parties have agreed to this technical partnership: Mercedes-AMG will provide the British icon Aston Martin with engines for their forthcoming sports cars. At our company´s headquarters in Affalterbach we are proud to work with Aston Martin – this agreement is a real win-win situation for both sides.”

Source: Aston Martin