Geely, a Chinese Car Manufacturer, Acquires Small Shareholding in Aston Martin

In a statement, Daniel Donghui Li, CEO of Geely Holding Group, expressed satisfaction over the investment in Aston Martin and voiced confidence in Geely’s ability to enhance Aston Martin’s future performance with its established track record and technological advancements. 

The exact value of the stake acquired by Geely was not disclosed, but reports from Reuters suggest it could surpass $8 billion. 

Geely’s automotive portfolio already includes Proton, Lotus, Smart, and Volvo, the latter of which was acquired from Ford back in 2010. 

Ownership of Aston Martin is shared among various entities, with minor stakes held by Mercedes-Benz, Saudi Arabia’s public investment fund, and a group overseen by Canadian entrepreneur Lawrence Stroll. Aston Martin went public on the London Stock Exchange in 2018, a move that resulted in a sharp decline of more than 97% in the value of its shares. 

Geely’s interest in acquiring a stake in Aston Martin has been ongoing. Despite previous attempts during the summer, agreements were not finalized. Geely also procured a small shareholding in Mercedes-Benz and is responsible for managing the Smart brand in China and Germany. 

Considering Geely’s substantial investments in other brands, Aston Martin may opt to explore utilizing one of its shared platforms for the transition to electric vehicles. Additionally, the strengthened financial position through Geely’s involvement can enhance Aston Martin’s outlook, which has been persistently challenging over the years. The luxury automaker has struggled to generate significant profits since its initial public offering in 2018 as well as in the years leading up to it. 

Yew Tree, owned by Stroll, announced in a statement per Autocar, the successful capital raise. 

“I’m pleased that we have concluded this pivotal capital raise, which significantly reinforces our financial standing and accelerates our path to achieving sustainable positive cash flow,” Stroll remarked. “Moreover, I extend a warm welcome to Geely Holding as a new shareholder.”