French automaker Renault, Japan’s Nissan and Germany’s Daimler AG yesterday said they will form an alliance to exchange capital and technology as the industry looks to overcome the economic slump.
The deal will see the Renault-Nissan alliance take a 3.1 percent stake in Daimler while Daimler will take 3.1 percent of Renault and 3.1 percent of Nissan, the companies said. Renault-Nissan and Daimler, which makes the luxury Mercedes-Benz line and the smart small car, also agreed to work together to develop technology for small cars and engines and collaborate in making light commercial vehicles.
The partnership will “complement each other very well,” said Daimler chairman Dieter Zetsche in a statement, adding that individual brand identities would not be affected by the deal.
PHOTO: REUTERS
“We are strengthening our competitiveness in the small and compact car segment and reducing our CO² footprint — both on a long-term basis,” he said.
COMPACT CARS
The auto giants said they had agreed to develop Renault-Nissan diesel and petrol engines to be used in the new smart and Renault Twingo, to be adapted and modified with Mercedes-Benz characteristics for new premium compact cars.
The next-generation Renault Twingo, smart fortwo and a new smart four-seater will be engineered using a jointly developed architecture and will include an electric version with a launch slated for 2013, the companies said.
“This experience is extremely valuable in today’s and even more tomorrow’s global auto industry,” Carlos Ghosn, chairman and CEO of Renault-Nissan said.
The global auto industry is struggling to overcome a slump caused by the economic downturn and is joining forces to share technology and reduce costs.
German industry experts think that by cooperating with Renault, Daimler could make savings of 600 million euros (US$800 million) in its development costs.
Despite poor sales for its smart brand of mini-cars, Daimler envisions a turnaround by sharing parts with automakers that have strength in small vehicles, according to recent Japanese media reports.
SHARE PARTS
Renault, maker of the popular Clio small car, entered into an alliance with Nissan 11 years ago to share parts and open up access to production sites worldwide. The Japanese carmaker is 44.3 percent owned by Renault.
Nissan, for example, builds Renault Sandero hatchbacks at its plant in South Africa while Renault builds Nissan models in Brazil. The two carmakers have built a joint plant in India.
Renault, Nissan and Daimler had combined sales of 7.22 million vehicles last year, trailing the 8.6 million units for the alliance between Volkswagen and Japan’s Suzuki and the 7.81 million vehicles sold by Toyota.
Volkswagen, the biggest European car maker, and Suzuki finalized a cross-shareholding operation last year.
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