Daimler AG and the Renault-Nissan auto alliance have agreed on a partnership to share development costs, engines and small-car technologies to take on Volkswagen AG and Toyota Motor Corp
As was expected, each partner will invest in the other, and per the agreement, Daimler will receive 3.1-percent of Renault’s newly-issued shares, and 3.1-percent of Nissan’s existing shares. Renault and Nissan are each taking a 1.55-percent stake in Daimler, while Renault is also picking up an extra 2 percent of Nissan’s shares.
The alliance, projected to generate savings and revenue of 4 billion euros in total over five years, will bring Daimler’s Mercedes and Smart brands closer to Renault’s small cars and Nissan’s Infiniti range.
Dieter Zetsche, chairman of the board of Daimler, said: “Our skills complement each other very well. Right away, we are strengthening our competitiveness in the small and compact car segment and are reducing our CO2 footprint – both on a long-term basis.
“We know that we can make brand-typical products based on shared architectures. The individual brand identities will remain unaffected.”
Renault-Nissan chairman Carlos Ghosn added: “This agreement will create lasting value for the Renault-Nissan Alliance and Daimler as we work on broadening and strengthening our product offering, efficiently utilising all available resources and developing the innovative technologies required in the coming decade.”
Renault-Nissan and Daimler estimate the deal will save them each two billion euros over the next five
Under the accord, the automakers will develop common parts and architecture for a new generation of Renault Twingo and Smart subcompacts to go on sale in 2013 with conventional and electric powertrains.
Cooperation on engines and transmissions will extend further, with Renault-Nissan providing powertrains for a future range of Mercedes-Benz compacts, as well as the Smart and Twingo models. Daimler in turn will make its larger gasoline and diesel engines available for Infiniti.