Friday 10 January 2020 4:01 pm

Lotus owner Geely considers taking stake in Aston Martin

Lotus and Volvo owner Geely is considering pumping some much-needed cash into Aston Martin.

The Chinese firm is assessing whether to take a stake of the UK luxury carmaker, which is in need of fresh finances, according to the Financial Times.

One source told the FT it may involved a technology partnership rather than full investment.

Read more: Aston Martin issues profit warning on weak sales

Geely currently owns a 10 per cent share in German company Daimler, which sells technology and engines to Aston Martin.

The company also owns Britain’s Lotus and Sweden’s Volvo. It is one of several groups considering an investment.

Aston is in need of raising funds after falling sales and suffering an 80 per cent drop in share price since listing publicly in 2018.

The company revealed earlier this week that it “remains in discussions with potential strategic investors, which may or may not involve an equity investment into the company”.

It came after an unexpected profits warnings.

Read more: Aston Martin shares jump as billionaire Lawrence Stroll prepares to make offer

Another keenly interested party is Lawrence Stroll, who owns Formula One team Racing Point.

He is reportedly closest to making an investment of around £200m, which would give him control of 19.9 per cent of the comapny.

Aston Martin and Geely have declined to comment.