Daimler has no plans to raise its minority stake in loss-making luxury carmaker Aston Martin, the German company’s Chief Executive Dieter Zetsche said on Tuesday.
“We had all opportunities to increase our stake in Aston Martin. We do believe that for a company of that size, independence and a focused management is a recipe for success,” Zetsche told reporters gathered at the Geneva motor show.
Last month, Aston Martin reported its sixth consecutive annual loss, but said the DB11, a new model equipped with Mercedes electronics, caused a surge in sales at the end of 2016, reports Reuters.
Dieter Zetsche, CEO of Daimler AG, walks past Mercedes-AMG GT Concept car during the 87th International Motor Show at Palexpo in Geneva, Switzerland
The British luxury marque faces steep bills to keep its range of sports cars compliant with new emissions rules, increasing its dependency on larger corporations to act as suppliers for things like clean engines.
Daimler, which owns luxury brand Mercedes-Benz, struck a deal in 2013 to receive a 5 percent stake in Aston Martin in exchange for supplying engines and electronic components.
The deal helps Aston Martin, the only global luxury carmaker not attached to a larger manufacturer, spread the cost of developing new fuel-efficient vehicles.
Zetsche, however, ruled out Mercedes taking a bigger stake in Aston. “I think just the way we are working together is the perfect way for both sides and we have no plan of changing that,” he said.