Renault-Nissan and Daimler AG announce three-way cooperation

With automotive sales still on the road to recovery vehicle manufacturers have come under increasing pressure to improve their profit margins and key to this partnership is the potential in economies of scale and cost sharing in development in the group's three major divisions. New small vehicles will be engineered on the basis of a jointly developed architecture and although vehicles will clearly differ from each other in terms of product design, a main characteristic of the new architecture will be the unique rear wheel drive concept used by current smart vehicles. Engine cooperation to create competitive cost structure is a key feature for the powertrain sector but at the same time there will still be a clear distinction in brand and product identities. Closer cooperation in the light commercial vehicle segment will reveal a better overall cost basis. Dr Dieter Zetsche (pictured), chairman of the board of management of Daimler AG and head of Mercedes-Benz cars said "Daimler and the Renault-Nissan Alliance are combining common interests to form a promising foundation for a successful, strategically sound cooperation that is based on a number of very concrete and attractive project cooperations. Our skills complement each other very well. Right away, we are strengthening our competitiveness in the small and compact car segment". With environmental issues at the top of manufacturers' agendas the focus on small cars will also have a positive impact on the company's carbon footprint. Damler intentions to break into the small and electric car market may also spell good news for Nissan's plant in Sunderland. Sunderland is Nissan's leading European hub for the manufacture of the lithium-ion batteries and it has already committed to producing 60,000 lithium-ion batteries a year at the plant for its electric vehicles and those of its partner Renault. The press release also announced that Mercedes-Benz vans will expand its portfolio to offer an all-new entry-level, intended for commercial usage, from 2012 onwards. The technical basis of this van will come from Renault and will be produced at the Renault plant in Maubeuge, France. The partnership is underscored by a one-time cross-shareholding structure that will give the Renault-Nissan Alliance a 3.1% stake in Daimler and Daimler a 3.1% in Renault and a 3.1% stake in Nissan. Specific projects allowing knowledge sharing have already been agreed upon and according to the press release will be implemented with immediate effect.