Mercedes-AMG GmbH and Aston Martin Lagonda Ltd. intend to enter a technical partnership. The two firms signed a letter of intent last month, with elements of the proposal involving agreements between the companies that will hopefully begin during the second half of the year. Not only will Mercedes supply Aston Martin with engines, they will also give the British auto brand electric/electronic components for future models.

“We are proud to work with Aston Martin and provide them with powertrain and e/e components for their forthcoming sports cars,” said Ola Kallenius, head of Mercedes-AMG GmbH. “This is proof of AMG’s technological and performance expertise and a real win-win situation for both sides.”

Additionally, Daimler (of which Mecedes-AMG is a 100 percent subsidiary) will get up to five percent equity in Aston Martin following any progress the partnership makes. They will also receive an observer status on Aston’s Board of Management.

While both parties have agreed to stay quiet on further details, they’re quick to comment on their enthusiasm and confidence in the proposed deal. “We have selected AMG specifically as the basis for this powertrain development process,” says Ian Minards, director of Aston Martin product development. “Aston Martin sources cutting edge technology from key suppliers around the globe and the opportunity to include content from Mercedes-AMG GmbH in our next generation sports cars is, clearly, good news.”