Daimler and Renault-Nissan agree to further extend cooperation

Article by Christian Andrei, on October 6, 2014

Daimler AG and the Renault-Nissan alliance have agreed to further expand their partnership to include engines and transmissions. Renault will supply Daimler with a 1.6-liter four-cylinder diesel engine for to be installed in the Mercedes-Benz C class. On the other hand, Mercedes will supply Nissan with a 2.0-liter four-cylinder gasoline engine to be installed at Infiniti models.

Daimler has also provided a license to Nissan to make its nine-speed automatic transmission for use in Infiniti vehicles. Daimler and Renault-Nissan has also agreed to cooperate on transporter vans. As part of the agreement, Nissan will supply Mitsubishi Fuso Truck and Bus Corp. -- Daimler's Japanese commercial vehicles unit -- with the NV350 transporter van that will be sold as a Fuso Canter van in markets in the Middle East starting this year.

 The partners said there were no limits to how their collaboration could evolve. "We maintain the attitude that everything is on the table,” Renault-Nissan chief executive Carlos Ghosn during a news conference with Daimler CEO Dieter Zetsche at the Paris Auto Show.

They said that the partnership now has 12 projects that were resulting to cost savings of over of $2.5 billion (EUR2 billion). The partnership commenced in 2010 with each taking token reciprocal shareholdings. Since then, Mercedes, Nissan and Renault have shared engines, plants and platforms for small cars.

According to Ghosn, Sharing development, procurement and even manufacturing costs helps both companies save money. He added that they expect the annual revenue between Daimler and Renault-Nissan to more than double in the next six years, based on projects underway and planned.

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