Sources tell Bloomberg that German auto giant Daimler (DDAIF) and British sport car maker Aston Martin Lagonda are discussing a possible collaboration over sport utility vehicles.
Last year, Daimler took a stake of up to 5% in Aston Martin. Under that partnership, Daimler’s Mercedes division will create engines for upcoming Aston Martin cars. The new deal could see Daimler share SUV technology with Aston Martin.
The discussions between Aston Martin and Daimler remain preliminary. Aston Martin — the only worldwide luxury brand that is not owned by a major auto giant — could opt to develop a sports utility vehicle using in-house technology. Aston Martin has previous stated its intention to invest $832 million to boost its ability to compete with other luxury brands.
Among global luxury auto brands, Daimler’s Mercedes trails BMW and Volkswagen’s (VLKAY) Audi.
Shares of Daimler rose more than 1% in Monday over-the-counter trading.
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