Renault, Nissan, Daimler in alliance to strengthen hold on car markets
- Source: Xinhua
- [08:43 April 08 2010]
- Comments
Chairman and CEO of the Renault-Nissan Alliance Carlos Ghosn (L) and Chairman of the Board of Management of Daimler AG and Head of Mercedes-Benz Cars, Dieter Zetsche attend a news press in Brussels, capital of Belgium, April 7, 2010. Photo: Xinhua
Carmakers Renault, Nissan and Daimler entered wide-ranging alliance on Wednesday, aiming to strengthen their hold on markets amid fierce competition and signaling a new wave of partnership in the car industry.
Under the deal, Renault and Nissan, which has already been in strategic cooperation for 11 years, will take a 1.55 percent stake respectively in the German carmaker Daimler, while Daimler will take a 3.1 percent stake in each of the other two partners.
However, the cross holding of shares was largely symbolic. The essence of their alliance was to develop small cars jointly and share gasoline and diesel engines.
Speaking at a joint news conference following a signing ceremony in Brussels Wednesday, Daimler chief executive Dieter Zetsche said that rising demand for small cars was a key driver behind the alliance.
"Since the small and compact vehicle segment is so highly competitive and price sensitive we also need to have the right cost structure," he said.
Rising fuel prices have forced more customers to buy energy- efficient small cars, which holds great potential for automobile giants, but profit margin of the small cars such as Renault's Twingo and Daimler's Smart are usually thinner than luxury models. By sharing technology and manufacturing platforms, the three car makers would effectively reduce costs and improve competitiveness.
The alliance would see three car makers cooperate on the next- generation Smart Fortwo and Twingo, including electric versions, as well as on expanding the Smart and Twingo families. A new Smart four-seater and the next-generation Twingo will be engineered on the basis of a jointly developed architecture, with the launches of the jointly developed models planned for 2013 onwards.
"Right away, we are strengthening our competitiveness in the small and compact car segment and are reducing our CO2 footprint, both on a long-term basis," Zetsche said.
They will also share and co-develop diesel and petrol engines to be used in the new Smart and Twingo models, which will be adapted and modified for a new generation of premium compact cars for Daimlers' Mercedes-Benz. Daimler will provide its petrol and diesel engines for Infiniti, the luxury division of Nissan.
