A new partnership aimed at saving billions of dollars and accelerating sales of pollution-light electric cars was created by Renault, Nissan and Daimler, the companies announced on April 7.
The companies said they had agreed to develop Renault-Nissan engines for use in the Smart and Renault Twingo, to be adapted and modified with Mercedes-Benz characteristics for new premium compact cars. The Renault Clio was one of the most successful small cars of the last decade.
Under the plans, the next-generation Renault Twingo, Smart "fortwo" and a new Smart four-seater will be engineered using jointly developed architecture and will include an electric version with a launch slated for 2013.
In addition, Daimler will provide engines to Infiniti, Nissan's luxury division.
Renault-Nissan, whose own alliance already goes back 11 years, and Daimler AG, which makes the luxury Mercedes-Benz line and the Smart brand aimed at crowded and polluted cities, will exchange shares and technology as the auto industry bids to bounce back after recession.
The companies, which anticipate combined savings of four billion euros (US$5.34 billion) over the first five years of their cooperation, will share existing diesel and gasoline engines while jointly developing technology for new electrical versions.
They plan to produce and market new cars and vans in a bid to close the gap on the world's best-selling auto makers, a similar alliance finalised last year between Volkswagen and Suzuki, and Toyota.
Renault chief Carlos Ghosn said he would remain "prudent" in terms of how the "strategic" cooperation would affect employment in an industry that has been decimated in Europe, with hundreds of thousands of manufacturing jobs transferring out of the region.
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