European investor swoops in to save Aston Martin
The Aston Martin V12 Zagato at the 82nd Geneva International Motor Show in Geneva, Switzerland, on March 6, 2012. (Keystone / Sandro Campardo)
Published Sunday, December 9, 2012 10:58AM EST
Iconic British car company Aston Martin has been pulled from the brink by a European investment company.
The luxury automaker announced in a statement posted on its website that Italian private equity firm Investindustrial has become a major shareholder.
Aston Martin had been facing financial difficulties recently, with no major car companies showing interest in an investment, purchase or partnership since Kuwait’s Investment Dar and Adeem Investment bought the automaker from Ford five years ago.
According to the statement, Investindustrial is spending the equivalent of approximately $240 million for a 37.5 per cent stake in Aston Martin.
The British marque intends to invest more than "half a billion pounds" in its product and technology program over the next five years.
"With this partnership and the continued commitment of The Investment Dar, we look forward to working with our shareholders as we realise our vision and exciting future plans," Aston Martin chairman David Richards said.
According to its website, Investindustrial is a leading investment group "focused on taking control positions" in southern European medium-sized companies.
Aston Martin’s car production will remain in a facility in Warwickshire.