Carmakers Renault SA, Nissan Motor Company and Daimler AG on Wednesday unveiled a wide-ranging alliance to help them compete better in the market for small, fuel-efficient vehicles.
The partnership comes amid a painful industrywide slump and will be sealed with a cross-shareholding giving the three companies small, symbolic stakes in each other.
Renault and Nissan will each take on a 1.55 per cent stake in Daimler, which in turn will take a 3.1 per cent stake in each of the other two.
Speaking at a joint news conference in Brussels, Daimler boss Dieter Zetsche cited rising demand for small cars as 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,” Zetsche said.
The heads of Renault and Daimler estimated that they would achieve euro 2 billion ($2.7 billion/ Rs 12,000 crore) in cost savings and additional sales from the new alliance over the first five years.