What's the news?

Well, news would usually be something that was unexpected or out of the blue. This isn't; we've known about the tie-up between Aston Martin and Mercedes-AMG for some time now, and the statement released today (December 19, 2013) is merely confirmation of an extensive technology share between the sports car brand and Mercedes' high-performance division.

So it's now official; Aston will get hold of AMG's turbocharged 5.5-litre V8 engine for its next generation of models and it may also get AMG's mighty twin-turbo V12 from the SL 65 AMG for a range-topping Vanquish model as well. The two companies are also exploring cooperation in the electronic and electrical sphere, which could mean mundane things like stereos, air conditioning and touch-screens, but it could, theoretically, also extend to hybrid tech as well.

There's also a faint possibility that Aston could use the 360hp turbocharged four-cylinder engine from the A 45 AMG for a future entry-level model, and this technology transfer agreement will almost certainly mean that Aston will get to use the M-Class platform for a Lagonda-badged luxury SUV to take on the Porsche Cayenne.

In return, Mercedes-Benz gets a five per cent stake in Aston, a non-voting seat on the board and will join a shareholder group that includes Adeem Investment and Invesdustrial.

A spokesperson for the Aston Martin board said: "Our company is this year celebrating its centenary, and the partnership agreed today underpins prospects for Aston Martin's bright, vibrant and dynamic second century in the sports car business."

"This strategic collaboration for Aston Martin will, in our next generation of luxury sports cars, offer our customers increased performance and efficiency whilst retaining the unique character and style of an Aston Martin."

Tobias Moers, Chairman of the Management Board of Mercedes-AMG GmbH added: "By signing the Umbrella Agreement and the Engine Agreement both parties have agreed to this technical partnership: Mercedes-AMG will provide the British icon Aston Martin with engines for their forthcoming sports cars. At our company´s headquarters in Affalterbach we are proud to work with Aston Martin - this agreement is a real win-win situation for both sides."

Anything else?

Aston says that all of its production will remain at its British base in Gaydon, Warwickshire for the moment, but if the brand wants to expand (as surely it must do) then it will doubtless be eyeing up Mercedes' own lower-cost plants in the USA and South Africa.