German company Mercedes-Benz will increase its stake in Aston Martin Lagonda as part of the British automaker's financial recovery plan.
Aston Martin, which ran out of cash after a catastrophic public offering, said Mercedes would increase its stake "in stages " from 5% to 20%.
In a statement made after the close of the London Stock Exchange, the transaction was described as a "strategic technology agreement."
This happened a few months after the owner of the Formula 1 team, Lawrence Stroll, acquired a majority stake in the British luxury brand.
The deal will provide Aston Martin, whose profitability has never matched its status as one of the UK's leading brands for decades, access to Mercedes' electric vehicle technology.
Mercedes first teamed up with Aston Martin in 2013, gaining a 5% stake in a deal in which the two companies worked on engine development.
Aston Martin, widely known as the favorite car company of James Bond, plans to increase sales to 10,000 by 2025, up from 5,862 units sold last year.
The company also said Tuesday that it has a long-term strategy to increase revenues to £ 2 billion and achieve profits of around £ 500 million in five years.
In the first phase of the investment, Mercedes will increase its stake to 11.8% in a £ 140m share issue.
Separately on Tuesday, Aston Martin reported a pre-tax loss of £ 29 million for the third quarter, compared with a profit of £ 43 million in the same period last year.
