Daimler-Renault-Nissan To Take on VW and Toyota

Golden Gate Bridge San Francisco Cars

Cars on Golden Gate Bridge in San Francisco, California

In a bid to take on VW and Toyota, Daimler AG and Renault-Nissan auto signed an alliance and agreed on a partnership to share development costs, engines and small-car technologies to take on Volkswagen AG and Toyota Motor Corp.

As a part of the alliance, Daimler will swap a 3.1-per-cent stake, valued at 1.17 billion euros ($1.6 billion) for holdings of the same size in Renault SA and in Nissan Motor Co. each. Under the accord, the automakers will develop common parts and architecture, and co-operation on powertrains will extend further, with Daimler providing larger gas and diesel engines.

The alliance is projected to generate savings and revenue of 4 billion euros over five years. A case of scratching backs we thinks.

Picture Courtesy: smif

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