A technical partnership between Mercedes-AMG GmbH, a 100% subsidiary of Daimler AG, and Aston Martin Lagonda Ltd has officially been signed. First announced in July this year, the agreement is now a go, with both sides seeing significant benefits for the immediate future.

Mercedes-AMG will now work with the Gaydon-based sports car maker to develop bespoke V8 engines that are to be used in the latter company’s next-generation line-up. The proposed powertrains are said to use cutting-edge technologies to combine both high performance and fuel efficiency.

In return, Daimler AG will receive up to five percent non-voting shares in Aston Martin, which will be spread out following the progress of the technical partnership. The parties are also working to conclude the terms of an additional cooperation for the supply of electric/electronic (e/e) components.

Considering that the existing range of Aston Martin V12 engines can trace its roots back to a pair of mass-produced Ford Duratec V6 motors from the mid-‘90s, the new AMG-developed V8s will have more racing pedigree to call upon. The other significant carmaker to use bespoke AMG power is Pagani, in both the Zonda and Huayra hypercars.