Aston Martin is to team up with Mercedes to develop a new generation of engines and components.
As part of the deal, Mercedes owner Daimler will take a stake of up to 5% in the UK luxury auto maker.
It is hoped the partnership will allow Aston Martin to compete more effectively with Volkswagen's Bentley and Tata Motors' Jaguar Land Rover.

100-year old Aston Martin makes the V8 Vantage, DB9 and Vanquish sports cars.
The companies did not release any financial details of the deal, which they aim to complete by the end of the year.

Aston Martin has been struggling of late. In the nine months to the end of September last year it sold 2,340 cars, a 19% drop on the same period in 2011.