Daimler, Renault-Nissan team up

Daimler and Renault have announced a co-operation on platform and drivetrain sharing. The tie-up will involve Mercedes, Renault, Nissan and Smart working together on new models.

The aim is to save what a Daimler insider described to Autocar as “billions of euros in annual savings for both sides”.

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."

Major components of the deal will be the sharing of drivetrain technology and Project Edison -- a new small car initiative -- that will use a rear-engine/rear-wheel drive layout. Renault will use the new platform as the basis for the production version of the electric Twizy and the next Twingo.

Project Edison will include an electric powertrain based on the Smart ED, and there will be a range of new four-cylinder petrol and diesels to be uses in Mercedes, Smarts, Renaults and Nissans. Ranging from 1.2 to 1.8 litres, the engines will be engineered by Daimler and built by Renault. They will be used in cars such as the next Mercedes A and B-class, as well as forthcoming Renault Meganes and Clios. Renault is planning to launch its next-generation Clio based on Nissan's V platform in the coming years, with the company confirming that a small entry-level car would be made at its upcoming Channai plant in the future.

Although not part of the initial co-operation, Daimler sources reveal that Renault’s Carlos Ghosn is also investigating using Mercedes-Benz’s new front- and four-wheel drive MFA platform set to underpin the new A- and B-class for a proposed entry level Infiniti model as well.

Also under discussion is a possible further expansion of the co-operation agreement that would see Daimler supply Renault with V6 and V8 petrol and diesel engines as well as a new automatic transmission to replace the existing seven-speed 7G-Tronic units.

The companies will also collaborate on light van projects. As part of this deal, Renault-Nissan will make its diesel engine and transmission technology available for use in the Mercedes Vito.

As part of the deal, Daimler will take a cross-shareholding of 3.1 per cent in Nissan and Renault. Renault-Nissan will take the same stake in Daimler.