Daimler, Renault and Daimler have agreed to an alliance where they share development costs and possibly facilities. In return, Daimler bought a 3.1% stake in Renault and Nissan, while the latter two keep 1.5% of Daimler. Renault, which owned 44% of Nissan, now owns about 43%. The triad will share development costs and facilities.BusinessWeek has more:
Renault, Nissan and Daimler today signed an agreement that will include cross-shareholdings of as much as 3.1 percent. The automakers plan to share development costs for platforms and technologies including powertrains, adding up to as much as 2 billion euros ($2.7 billion) in combined savings for Renault and Nissan in the first five years, according to the companies.
(Renault-Nissan CEO Carlos) Ghosn has said Nissan is trying to fully use its capacity in North America to take advantage of a weak U.S. dollar. Daimler, the world’s second-largest luxury-car maker, will move some production of the Mercedes-Benz C-Class model to a plant in Tuscaloosa, Alabama, its only car factory in North America, in 2014 from its Sindelfingen facility in Germany.
“We aren’t looking for size by forming the alliance, but we want to transform the size into synergies,” Ghosn said. “The Renault-Nissan alliance and Daimler are so complementary.”
The Daimler-Renault-Nissan deal comes at a time when the tightening emissions laws and the economic downturn have hit the auto industry hard. Sharing costs and increasing scale will allow the automakers to stay competitive in a challenging global market. Sharing resources will also help the three companies step into the future more quickly by producing electric cars efficiently. Daimler also finally gets a financial partner for its third generation of Smart cars. This deal is win-win-win.