Daimler inks strategic pact with Renault-Nissan

German auto major Daimler, maker of Mercedes-Benz cars, trucks and vans, and the Franco-Japanese alliance, Renault-Nissan, on Wednesday announced a strategic three-way alliance to develop small cars, engines and light commercial vehicles.

As part of the understanding Renault and Nissan would each acquire a 1.55% stake in Daimler, worth €584 million each as of Tuesday. Daimler will acquire a 3.1% stake in Renault, worth €326 million, and a 3.1% stake in Nissan, worth €921 million.

The strategic cooperation will be managed through a 12-member cooperation committee, to be co-chaired by Carlos Ghosn, chairman and CEO of Renault-Nissan and Dieter Zetsche, chairman of the board of management of Daimler, and will be steered by senior executives of the three companies.

The alliance will collaborate on small car technology, capture additional sales potential, improve capacity utilisation as well as reduce their CO2 compliance costs. They will also cooperate on powertrain sharing and co-develop passenger cars and light commercial vehicles.

The alliance will not affect individual brand identities.

Development of small car technology will include next-generation Renault Twingo and Smart Fortwo models as well as electric versions of the car and Daimler's Smart car range.