Daimler-Renault-Nissan Deal to Put Focus On Small Car
The partnership between Renault-Nissan and Daimler has been closed on a cross-shareholding model.
Franco-Japanese alliance Renault-Nissan and German Auto Major Daimler proclaimed their three-way alliance on Wednesday. The partnership will be comprised of equity swaps, co-operation in development of small cars and light commercial vehicles.
As per the alliance, Renault-Nissan Alliance will get 3.1 per cent stocks in Daimler and Daimler will get 3.1 per cent stakes in Renault and another 3.1 per cent in Nissan.
This association between the two pioneers will be focused explicitly on small car technology that will include the next generation Renault Twingo and Daimler's Smart car series.
Under this agreement, both the groups will be developing future power trains for light commercial vehicles as well as cars. The contract also talks about the common opportunities related to purchasing and sourcing.
Daimler and Renault-Nissan both are hopeful that this partnership will turn out to be a significant cost saving measure.
The inference of the association stretches out to operations outside of Europe too with developing markets also likely to gain profits of the synergies.
Daimler AG Chairman of the Board of Management Dieter Zetsche said in a statement that this alliance between both the groups will be bringing together the common interests to lay down a promising foundation which will be based on a various very definite and lucrative project co-operations. He explained that their skills balance off each other very well.
He further added that the main aim of the association will be to strengthen competitiveness in the small car market and decreasing carbon emission.
Renault-Nissan Chairman and CEO Carlos Ghosn said that the partnership is a measure to expand their strategic association and developing lasting value for the Renault-Nissan Alliance and Daimler.
According to market analysts, calculations already point out combined costs savings of almost over a billion Euro in the long term association provided things move in the right direction for new associates.
