FRANKFURT: Daimler AG will buy a 25 percent stake in Italian motorcycle manufacturer MV Agusta as part of a long-term cooperation deal which gives the German car and truck maker access to lightweight three-cylinder engines.
Daimler said on Friday it will buy the stake via its AMG performance cars unit and will take a seat on the board of directors at MV Agusta. Daimler did not disclose the financial terms of the deal. Cooperation between the two high-end brands will include marketing and sales, Daimler said in a statement.
Buying a stake in Agusta will give Daimler access to a range of high-performance three-cylinder engines which the Italian company has developed for its superbikes.
Interest in lightweight engines has increased as tougher anti-pollution rules push manufacturers to make greater use of smaller engines which can be used as "range extender" add-ons to complement electric engines in hybrid vehicles.
MV Agusta, with 260 employees at its headquarters on the shore of Lago di Varese in northern Italy, has a product portfolio of three- and four-cylinder models ranging from 675 to 1100 cubic centimeters engine displacement.
Tobias Moers, chief executive of Mercedes-AMG, said: "In MV Agusta, we have found the perfect two-wheel partner for Mercedes-AMG.
The partnership provides us with an entry into a world of additional high-performance enthusiasts." Giovanni Castiglioni, president and CEO of MV Agusta, said: "Mercedes-AMG will help MV Agusta to further expand globally and to accelerate our growth." Earlier this month, sources told Reuters that Daimler was in talks with MV Agusta about taking a stake.
The partnership is subject to the approval of the relevant authorities, expected to be granted in late November.
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