Renault-Nissan and Daimler entered into a tripartite deal for marketing small cars and LCVs. The deal ensures a distribution of stake for each of them- 3.1% of stake for Renault-Nissan in Daimler, 3.1% stake for Daimler in Renault-Nissan and 3.1% stake in Nissan. The deal envisages promotion of small car technology by the partners, including the next generation Renault Twingo and Daimler’s Smart cars. Proposal is also there for developing power trains for LCVs and cars in addition to common purchasing and sourcing.
The deal would mean a lot for Daimler and Renault-Nissan in terms of cost. The deal would lead the scope for Europe market and there will be mutual project understandings, said the Chairman for Daimler AG. The main objective of the deal would be, according to him, strengthening the competitiveness in the small car segment and reduction of carbon emission. The CEO and Chairman of Renault-Nissan complemented the deal as a set for strategic collaboration and a chance to lay lasting value for the alliance between the partners.
A deep impact of small car in India and indicated the step as the right move in right direction, said MD of Mercedes Benz. The analysts in the field calculate that there will be a cost reduction up to billion Euro in the years to come once the deal ran smooth for the partners. They hint the reversal of fortune for similar pacts in past, leading to debacles in the show.